1. What are some of the problems facing cattle ranchers?
Ranchers are currently facing a mess load of economic problems such as rising land prices, stagnant beef prices, over supplies of cattle, increased shipments of live cattle from Canada and Mexico, development pressures, inheritance taxes, and health scares about beef. This honestly does not surprise me that cattle ranchers are facing these kinds of problems, what with the economy and how far down the drain it has fallen.
2. What are "captive supplies" of cattle?
"Captive supplies" of cattle are cattle that are either maintained in company-owned feedlots or purchased in advanced through forward contracts. So when the prices of cattle start to rise, then the large meatpackers can flood the market with their own captive supplies, driving prices back down. Also, they can obtain cattle through confidential agreements with wealthy ranchers, never revealing the true price being paid.
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