Episode Transcript
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Speaker 1 (00:00):
Now we're going to talk here in just a moment
about something that I think most of us, if you
buy beef, have seen beef prices just go through the
roof over the last few years. And now Donald Trump
has made some noise about importing Argentinian beef and that
is creating a big blowback from beef farmers, all of
(00:22):
bee franchers all over the country. And joining me now
to talk about it is Chad Frank. He is the
Rocky Mountain Farmers Union President.
Speaker 2 (00:29):
Chad. Welcome to the show.
Speaker 4 (00:31):
Thank you for having me.
Speaker 2 (00:32):
Well, let us start.
Speaker 1 (00:34):
With something I'm going to tell you a little bit
about my childhood that people may not know.
Speaker 2 (00:38):
When I was ten.
Speaker 1 (00:39):
Years old, my dad took us to a slaughterhouse to
see the cycle of life fully all the way through.
Because we grew up in a rural area, a lot
of his friends had cattle, you know, and that was
just a part of their income stream. And we'd always
get to go out and feed the baby cows, you know,
with the bottles and things like that, which was a
great experience to have as a kid. But then I
would try and name them and my father would say, no,
(01:01):
this is food.
Speaker 2 (01:01):
You don't name your.
Speaker 1 (01:02):
Food, and so I feel like I probably have a
better understanding of the ranching process for you from your
average person that isn't in the ranching business, you know
what I mean.
Speaker 2 (01:13):
So let's start with beef production in Colorado.
Speaker 1 (01:16):
Tell me exactly what our ranchers are dealing with, what
they have been dealing with here in the state.
Speaker 3 (01:24):
Well, beef is a big industry in Colorado, our producers.
It's broken down into the cal calf guys. You know,
baby cows grow up and then they get weaned, and
then they go to a feeding operation where eventually they
get fed out to the point that they go to
a packing house and they become beatief. So those are
(01:46):
kind of two separate segments of the industry for cattle,
the cow calf guys, that's where I grew up. I
grew up on a eastern Colorado ranch. But the guys
in the mountains are dealing with a lot too. You know,
we've got the wolves issue. There are so many stresses
in the cattle industry. It is just a really tough
(02:08):
industry to be in. Like all of agriculture, it's the
stresses and the amount of money that goes through a
farming ranch. Most people can't have them. So I appreciate
that you have some background, didn't that.
Speaker 2 (02:20):
I mean, it's a lot, It's very much a lot.
Speaker 1 (02:23):
So let's start with why of the last few years, specifically,
what challenges have we have seen. You know, there's normal inflation,
but beef prices have been crazy over the last few years.
Speaker 2 (02:35):
What are some of the stressors that created that.
Speaker 3 (02:38):
Well, when you look back to COVID, you probably remember
during COVID the shelves were largely empty and they had
signs up saying due to limited supply, we can't produce beef. Well,
the backside of that story is there was plenty of cattle.
The feed lots were full of cattle that were overdone,
(02:59):
too fat, and the packers, because of some slowdowns you
know around COVID and work issues, weren't able to produce
as much beef. So that led to shortages, which shortages
lead to inflated prices. That's when you really started to
see the price of beef and stores go up. Unfortunately,
(03:19):
at the same time that that was happening, the cattle
guys were suffering because there was an oversupply of fat cattle.
So why do you feed more cattle when you're not
making any money. That led to a lot of guys
who are just barely scraping by decide I'm not going
out when it's twenty below zero and feeding cattle. I'm
so on the herd. Unfortunately, when they did that, they
(03:43):
set this chain reaction off that we're in now where
the cattle herd numbers are the lowest they've been in
seventy years. Seventy years ago is the last time we
had this few cattle in this country. Population has gone
up a lot since then, and people like beef. That's
driven demand. Unfortunately, it takes three to four years to
(04:03):
read build the cattle herd, and we are in a
spot where those heifer calves, instead of retaining them there
were so much money, they are feeding them out and
they become beef, so that cattle herd is not rebuilding.
So it's kind of a teen reaction event that started
with COVID.
Speaker 1 (04:21):
So let me ask you this now, Donald Trump is
talking about perhaps importing Argentinian beef in order to make
up some of that shortfall, and obviously this is not
a not music to the ears of beef producers.
Speaker 3 (04:36):
That's right, as I said that a lot of the
guys who are just barely scratching by already left the industry.
Speaker 4 (04:44):
What's left is a lot of the bigger.
Speaker 3 (04:46):
Family producers, and even they were just barely scratching by,
but they had enough equity they could get through it.
Speaker 4 (04:52):
Well. After five years of scratching by, you know, bayling
wire and duct tape.
Speaker 3 (04:57):
Now they are making money and they're kind of making
up for what they've had to do and get through
the last five years, the last ten years, and so
they're finally getting to the point that they're paying down
some of their debt. And then this announcement comes, which
the biggest thing that this announcement tells me is people
don't understand the beef industry. This announcement that we're going
(05:20):
to quadruple how much beef we buy from Argentina is
really kind of a drop in the bucket for beef
production in this country. So it's really not a big number,
but it has brought a lot of awareness to just
how complicated the beef market is, and how concentrated it is,
and just how a little announcement about a minor increase
(05:43):
in the amount of beef being imported sets off a
chain reaction. It drove the price of fat cattle down
four hundred dollars ahead just on that announcement.
Speaker 4 (05:54):
And this is.
Speaker 3 (05:55):
The time of the year when cacaff guys are selling
their calves, so it hurt.
Speaker 1 (06:00):
Let me go back to something you said, because I
think that we need to do a little more clarifying
on that supply chain choke that happened during COVID.
Speaker 2 (06:09):
Now that went back because.
Speaker 1 (06:11):
There simply wasn't enough people or the way the shifts
were running at the houses that process this beef.
Speaker 2 (06:17):
That was a function of.
Speaker 1 (06:20):
What I would say is free producers pretty much having
an absolute monopoly on processing beef. Correct, So we simply
do not have enough processors. And those are the people
that take a dead cow carcass and turn it into
pretty pieces of meat that we see at our grocery store.
So this is an incredibly important part of the process.
Speaker 2 (06:44):
Is that if there.
Speaker 1 (06:46):
Had been more producers, do you think it would have
created that bottleneck?
Speaker 3 (06:51):
I think it's really complicated. Again, COVID was a black
swaan event. You know, you can't plan for that. But
as you said, for companies produce over eighty percent of
the beef in this country.
Speaker 4 (07:04):
Most of those.
Speaker 3 (07:05):
Plants are processing five thousand plus head a day.
Speaker 4 (07:09):
Gone are the days where there was you.
Speaker 3 (07:11):
Know, local chains of grocery stores buying from local processors.
You know, I think that there is room in the
market for somebody that's doing fifty hundred head a day
and then ships that directly to your local grocery store
or your local restaurant. That segment of the popular head
(07:32):
of the industry is largely gone. And if that segment
still existed, I think that things could have been smoothed
a little better.
Speaker 4 (07:42):
But it's hard to say.
Speaker 3 (07:43):
You know, economists can go back and look at projections
and do some stuff, but I really think that we
need to get back to some of those mid sized
processors existing.
Speaker 1 (07:54):
What is the hold up there? Is it they don't
have the people that could staff them. I mean, or
are you versed well enough in the situation even given
a thought of why that has been allowed to happen.
Speaker 4 (08:08):
It's policy and market driven. Honestly.
Speaker 3 (08:11):
The way the USDA Food Inspection Service is set up
is it set up for those five thousand headed day plants.
The logistics and the cost of being the USDA processor.
You know, we've got some great ones here in Colorado
and across the west the do you know ten headed day,
(08:33):
But the difference between ten headed day and five thousand
headed day is a big difference in that middle ground.
The policy just doesn't work there. And the other thing
is we've allowed consolidation to happen to the point that,
you know, those big four packers drive the beef market.
If a small grocery store decides I want to buy
(08:53):
beef from you know, this small producer, eventually it starts
hurting the big guy's profit enough that they cut off
supplies of something else to those small markets and they
can't survive that.
Speaker 1 (09:06):
Ah, the old you're gonna do business our way, or
you're not going to do business at all. I want
to talk about country of origin labeling because I realize
and I feel like I don't know what how long
ago it was, but when I heard this story and
I talked about it on my show, like I should
be able to find out exactly where my food comes from.
When I buy farmed fish, and I buy a ton
(09:28):
of fish and occasionally I'll buy farm fish, I only
buy from certain countries because I've taken the time to
learn how Norway farms for fish versus how Chile farms
for fish. Right, I want to know where my food
comes from, and yet the federal government was like, Nah,
you don't need to know about that. What's the latest
on the country of origin labeling?
Speaker 4 (09:47):
I think you are like most consumers.
Speaker 3 (09:49):
Most consumers want to know where what they put in
their body comes from. And even if they don't go
to the effort of researching like you do, they still care.
Ten years ago, oh, we had a mandatory country of
origin labeling. Some of the other countries filed a complaint
with the World Trade Organization and it.
Speaker 4 (10:09):
Ended up getting repealed.
Speaker 3 (10:11):
We've been fighting since then, saying no, customers do want
to know. As you said, fish requires it, everything but
beef and pork requires it, which is there is no
logistical reason.
Speaker 1 (10:23):
What's interesting is what are those countries afraid of? You know,
if the food is labeled from there, what are they
afraid of? Why is that a bad thing for us
to know that it comes from country X or country Y.
Speaker 2 (10:34):
You know what I mean.
Speaker 1 (10:35):
If they're so proud of their their industry, then they
should want their label on there.
Speaker 3 (10:40):
The official WTO complaint was it allows discrimination against their product,
which tells me that they admit that American product is better.
Speaker 1 (10:51):
Yeah, I've got a couple of people on my text
line and I'm talking to Chad Frank.
Speaker 2 (10:55):
He's the president of the Rocky Mountain Farmers Union.
Speaker 1 (10:57):
Chad, a lot of people actually on our text line
are saying variation of the same thing. I appreciate what
you're saying, but we got to have some lower beef prices.
So how do you strike a balance between making sure
that our farmers here in the United States are not
going to be driven completely out of the business and
also letting American consumers have access to something they can afford.
Speaker 4 (11:19):
So a couple things.
Speaker 3 (11:20):
Beef is expensive, I'll given it that it is a
premium product. When adjusted for inflation, it's not that much
more expensive than it was twenty years ago. So it
feels worse now, but everything does. The other thing is,
I agree there's times that six dollars hamburger doesn't fit
the budget, and the reality is we need to import
(11:43):
some beef. We don't produce enough in this country, especially
lean beef. When you look at the ninety three percent
ground that probably has imported meat in it. We're not
anti importing meat. We're just like you. We think people
should be able to too.
Speaker 4 (12:00):
If you have it in.
Speaker 3 (12:01):
Your budget to spend six dollars a pound on beef,
you should be able to do that. If your budget
doesn't allow that, imported beef is a little bit cheaper
for the packers to import, but then they process it,
put it in the package, and sell it for six dollars. Right,
if we could get country of origin labeling back, people
could choose. You know, it fits my budget to buy
(12:23):
Argentine Argentinian beef, I'm going to buy that because that's
what I can afford. Or if you can afford it,
buy American beef.
Speaker 1 (12:32):
There you go, Chad Frank, I appreciate your insight today.
I would love I mean, I still buy most of
my beef at a small processor in Elizabeth. The Elizabeth
Meat Meat Company is what is no Elizabeth? What is
it called the Elizabeth? What is it called meat locker?
That's what it's called. Good Lord, that just went out
(12:52):
of my brain. They do a phenomenal job, and I bought.
You know, the reason I found out about them is
because they process for individuals. Right, you buy half a
cat and you're going to process there. That's what I
grew up with. Like the slaughterhouse that I went to
was locally owned by one of my dad's friends.
Speaker 2 (13:06):
And it's a shame that we.
Speaker 1 (13:10):
Can't sort of bring more of that to the forefront
to allow local farmers to sell directly to consumer, which
is another issue altogether, right, I mean, are you guys
limited in that respect?
Speaker 3 (13:23):
So I will say one thing that came out of
COVID is there were a lot of grants. There was
a lot of money put into creating more USDA butchering
facilities for just what you talk about. Wyoming before twenty
twenty didn't have any USDA slaughter facilities for direct to consumer. Now,
I think they've got three or four innovative foods expanded
(13:45):
up in Evans. You know, they do a great job.
That's where I normally, you know, get my stuff from.
And I agree, I think that there is that that need.
But when you can start talking like that, you're talking
about on half beef is what three four thousand dollars
and there are some people that just can't afford that
(14:06):
chunk of change all at once. So again, we do
need to be budget conscious. But you know, consumers should
have the right to choose. If you want to buy
from somebody that you know that produces good quality beef,
you should. If you want to buy US beef, you should.
If you want to if the budget says you need
to buy Argentinian beef or you know, Mexican beef or whatever, fine,
(14:29):
but let's label it and give people that opportunity to
make the choice.
Speaker 1 (14:33):
I agree Chat, and I think that once people tried
Argentinian beef, which tends to be a lot more grass fed,
they I love Mark like I want to have things
close to nature, but the marveling and American beef is
so much better. I'm just saying, Chad, Frank, I appreciate
your time today.
Speaker 4 (14:48):
Man, all right, thank you, thanks for bringing me on.
Speaker 2 (14:52):
No problem, very interesting