Normal
Cattle prices are actually often quoted as "farm gate prices" or sometimes "stock yard price", So when you are seeing the "cattle Price" thats called the farm gate price.But did you actually understand what I wrote about all the other costs involved, and do you understand how reducing the cattle prices by X% won't ever mean the price of packaged meat at your local store with reduce by X%Yes, just like any other commodity producer, as a farmer your profit will depend on your production costs being lower than the market price of your commodity, that is true whether your are producing Cattle, soybeans, corn, Iron Ore, Oil, Copper or Coal or any one of a 1000 other commodity products.If your production costs are consistently not low enough for you to generate a profit, you should change businesses.The food retailers work on about a 30% mark up based on the price they pay for the product delivered to their store, and that reduces down to about a 3% profit margin or less when all the other costs are deducted, if you don't believe me check out the annual reports of Coles and woolies.
Cattle prices are actually often quoted as "farm gate prices" or sometimes "stock yard price", So when you are seeing the "cattle Price" thats called the farm gate price.
But did you actually understand what I wrote about all the other costs involved, and do you understand how reducing the cattle prices by X% won't ever mean the price of packaged meat at your local store with reduce by X%
Yes, just like any other commodity producer, as a farmer your profit will depend on your production costs being lower than the market price of your commodity, that is true whether your are producing Cattle, soybeans, corn, Iron Ore, Oil, Copper or Coal or any one of a 1000 other commodity products.
If your production costs are consistently not low enough for you to generate a profit, you should change businesses.
The food retailers work on about a 30% mark up based on the price they pay for the product delivered to their store, and that reduces down to about a 3% profit margin or less when all the other costs are deducted, if you don't believe me check out the annual reports of Coles and woolies.
Hello and welcome to Aussie Stock Forums!
To gain full access you must register. Registration is free and takes only a few seconds to complete.
Already a member? Log in here.