It is often necessary for the packer to take a marginal loss on beef in order to stimulate demand, but he must at once hedge against this loss by buying cattle cheaper. He tries to fit the price he pays for cattle each day to the price he is obtaining for beef. Only by so doing can he maintain his business on present small margins. Large receipts of fish, poultry, game, eggs, vegetables or fruit at certain seasons also affect the price the public is willing to pay for beef, and this is reflected in the price the packer can afford to pay for the live animal.
It is plain that the packer cannot determine retail meat prices, simply because he cannot say to the consumer at the butcher’s counter, “You must buy meat and you must pay such and such a price.” Because he cannot do this he cannot control the prices of livestock.
WHAT MAKES THE PRICE OF CATTLE
THIS CHART SHOWS THAT DEMAND BY CONSUMERS IS THE BIG FACTOR
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What Efficient Distribution Means
LIVESTOCK producers are, of course, engaged in an absolutely indispensable industry. Of scarcely less importance is the packing business. For upon food production and preparation depend all other industries and activities.
But it is profitable and enlightening to ask, of what use would be production and preparation without means for delivering the food to the consumer? The mere asking brings realization of the prime importance of ample and uninterrupted transportation and distribution of packing house products to consumers through the retailers of the country.