Sulphur Springs News-Telegram (Sulphur Springs, Tex.), Vol. 111, No. 68, Ed. 1 Tuesday, March 21, 1989 Page: 4 of 12
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A-*—THE NEWS-TELEGRAM, Sulphur Spring*, T*xas, Tuesday, March 21,1989.
Livestock farming
grows condensed
TUESDAY
By DON KENDALL
AP Farm Writer
WASHINGTON (AP) — The
livestock industry is growing even
more concentrated in the hands of
relatively few operators, says an
Agriculture Department analyst.
“While there are still thousands
of small livestock producers, their
number has declined substantially
in recent decades," says Ken Nel-
son of the department's Economic
Research Service. “In 1987, the
four largest slaughter firms ac-
counted for 67 percent of steer and
heifer slaughter, up fiom 35 percent
in 1979.”
Meanwhile the market share of
the four companies for hog
slaughter increased to 37 percent
from 34 percent. The share for
sheep and lamb slaughter rose to 75
percent 1987 from 64 percent in
1979.
“Among producers, cattle
feedlots show a high degree of con-
centration,” Nelson said. "Of
42,081 feedlots in the 13 major
feeding states, which account for
90 percent of all fed (cattle)
marketings in the U.S., the 200 lar-
gest accounted for nearly half of
the 1987 marketings.”
Nelson, who writes in the March
issue of Agricultural Outlook
magazine, said firms merge and
take over other companies to “to
improve efficiency in management
and production, and perhaps to gain
market power.” Some practice ver-
tical integration by taking over at
least two stages of the production
and marketing pipeline.
“For example, Cargill and Con-
Agra, both major processors, have
inerests in grain marketing, live-
stock and poultry production, and
meat processing,” he said. “Some
firms expand horizontally by ac-
quiring other firms in different in-
dustries. The diversification cuts
risks if one industry goes into a
. decline.”
The trend to fewer meat packers
means fewer potential livestock
buyers in local markets, and Nelson
said shifts from organized public
markets toward direct sales to
packers have cut market contacts"
%for many small producers.
“Larger packers also have ac-
quired some country buying points
formerly owned by cooperatives or
small marketing firms,” he said.
“In a recent survey, producers said
they had fewer bidders for their
livestock in 1988 than in 1982,” .
By and large, Nelson said, the
worries of consumers, small
processors and small producers
focus on the growing market power
of the big companies. They fear the
big firms are cutting prices received
by small farmers and are boosting
consumer meat prices.
Nelspn said the growth of big
companies also gives rise.to fears
of discrimination against independ-
ent suppliers, small customers and
workers. There are also fears of
predatory pricing to force out small
competitors.
But consolidation “could be
beneficial” if such fears and con-
cerns are dealt with, he said. Live-
stock production and processing
show economies of scale, where
larger size of operations lowers the
per unit costs of production.
“Large firms can benefit from
such economies and at the same
time invest in product and market
development,” Nelson said. “Such
firms can pass on savings to far-
mers and consumers — savings
that would not be possible in a less
concentrated livestock and meat in-
dustry."
The question, he said, is who
benefits.
“When a few firms dominate,
the cost savings could stay mostly
with the firms,” Nelson said.
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Despite lack
of rainfall
crops fruitful
WASHINGTON (AP) — Despite
smaller yields because of last year’s
drought, vegetable producers
nationwide probably took in a
record dollar value for their crops,
says the Agriculture Department
Although there was no estimate
for 1988, growers’ receipts “likely
increased slightly” from the record
level of $9.2 billion in 1987 be-
cause of higher prices, the
department’s Economic Research
Service said Tuesday.
“Total output of vegetables
probably fell about 4 percent in
1988 because of declines in potato,
dry bean and processing vegetable
production,” the agency said in an
outlook report. “Assuming normal
weather, output should rebound in
1989.”
ASTRO •GRAPH
Bernice Bede Osol
i^Your
‘Birthday
March 22.1989
Several involvements in joint ventures
are likely in the year ahead and each will
have to be handled with extreme skill.
One in particular will have exceptional
potential.
ARIES (March 21-April 19) Your judg-
ment Is questionable today and steps
you take might have to be retraced. Be
prepared to do with your feet what you
fail to do with your head. Aries, treat
yourself to a birthday gift. Send for your
Astro-Graph predictions for the year
ahead by mailing $1 to Astro-Graph,
c/o this newspaper, P.O. Box 91428,
Cleveland. OH 44101-3428. Be sure to
state your zodiac sign.
TAURUS (April 20-May 20) Usually you
like to work at your own pace, but today
you might not be able to do so because
of demands and responsibilities foisted
upon you by others. Don’t rebel.
GEMINI (May 21-June 20) Do not rely
too heavily upon others today to bail
you out of a situation where you have
gotten in over your head. It looks like it
will be up .to you to correct the matter
yourself.
CANCER (June 21-July 22) Even
though your intentions may be good,
it’s best not to make major decisions
today without first consulting the other
people involved. Their interests might
conflict with yours.
LEO (July 23-Aug. 22) Details are im-
portant today and they should not be
overlooked, but be careful not to let
trivial points obscure the big picture.
Stand back a bit to get a better
perspective.
VIRGO (Aug. 23-Sept. 22) Don't let
your natural prudence and caution de-
sert you today in an involvement where
there is something of value at stake.
Foolish gambles aren’t apt to get the
job done.
LIBRA (Sept. 23-Oct. 23) Even though
your way of doing things may be better
than your associates' procedures to-
day, you might have to make certain ad-
justments in order to salvage their
pride.
J
0
FOLLOW
FADER
FACTORYTOYOU
MANUFACTURER'S OUTLET CENTER
^JpriwAtrti/ekf
30-50-75% OFF
/•
i
ARE YOU
PUTTING
ME
w
MAKE THE
CONNECTION
FOR SAFETY!
A MfSSAdt FROM t»5 NfWSPARfR
AMO IH€ OPS TROOPfRS
• GENERAL SIGNS & DECALS • PRESPACED VINYL LETTERS
• WINDOW LETTERING • PLASTIC LETTERS
• TRUCK LETTERING • LIGHTED BOXES A FACES
• MAGNETIC SIGNS * • BANNERS
SIGNS & DECALS, INC.
"pA4t - 0Utt
<214)MM754 • 223 Man • HM012SSM69
SCORPIO (Oct. 24-Nov. 22) You are
likely to be extremely imaginative to-
day. but, unfortunately, you might use
this splendid faculty tc anticipate nega-
tive results instead of positive ones.
SAGITTARIUS (Nov. 23-Dec. 21) Gen-
erally speaking, your financial trends
are rather encouraging, but they could
be subjected to occasional severe
strains. This may be one of those days.
CAPRICORN (Dec. 22-Jan. 19) Several
important objectives you establish to-
day could be very difficult to achieve.
This might not be due to outside cir-
cumstances, but to your own faulty
tactics.
AQUARIUS (Jan. 20-Feb. 19) You might
have to contend with a situation today
similar to one you didn’t handle too well
in the past. Try to profit from your mis-
takes instead of repeating them.
PISCES (Feb. 20-March 20) You are in
a cycle where your hopes and expecta-
tions can be realized, provided you pur-
sue them in a realistic manner. Be a
practical doer, instead of just a
dreamer.
© 19(9. NEWSPAPER ENTERPRISE ASSN.
Try Oar
WEDNESDAY NIGHT
e* SPECIAL
Enchilada Dinner
k ^ TKre# let! m Cheese a a m
Enchiladas. Beans, Rice, I J
/CAH reSW*
Chips and Net Saaee
- OPEN -
11 i.i. - 9 p.n. Mon. - San.
ttSOOtt IS5-0067
912 OilMDr, Snlphar Sprinfs
Salute To
F
FAMILY OWNED
BUSINESS
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Keys, Clarke. Sulphur Springs News-Telegram (Sulphur Springs, Tex.), Vol. 111, No. 68, Ed. 1 Tuesday, March 21, 1989, newspaper, March 21, 1989; Sulphur Springs, Texas. (https://texashistory.unt.edu/ark:/67531/metapth816102/m1/4/?q=%22~1~1~1%22~1: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Hopkins County Genealogical Society.