The Denison review. [volume] (Denison, Iowa) 1867-current, 1913-11-05
THE REAL CAUSE
OF HIGH BEEF
w. j. Kennedy, Of Ames, says It's the
Supply Demand Low and Takes
Blame from Farmer.
THE SCARCITY is WORLD WIDE
Neither the Farmer, Packer or Retail
er are to Blame. Thinks Day
of Cheap Meat Passed.

By w. J. Kennedy, Director of Ag
ricultural Extension Iowa State Col
.ege: 1t is really amusing to lister
to and read the many reasons ad
yanced for the present high prices Of
beef and other meat products. Some
people place AL the blame on the farm
err, others blame the packers, and still
others the retail butcher. A careful
study of the existing conditions will
reveal the fact that no one OF the much
accused and oftentimes bitterly abus
ed above mentioned parties is really
responsible for the present prices OF
beat steak. 1t is governed by the law OF
supply and demand.
For the first time in the history OF
modern civilization our people are fac
ing what appears to be a near beet
famine. 1t has been gradually facing
us every since 1907. Between January
1, 1907, and January 1, 1913, our sup
ply of beef cattle fell off some 1870.
900 head or about 30 per cent, while
our population increased about 10000,
600 people. This would not be such a
serious matter from the consumers
standpoint if it applied just to the
united States. A careful study OF
the beef cattle situation in all beef
producing countries clearly indicates
that there is a world wide shortage
as in but two countries, namely, Aus
tralia and France, has beef production
kept pace with increase in population
since 1900.
Between 1906 and 1912 our exports
in live cattle fell off about SO per cent
our exports in fresh beef fell off 81 pei
cent, and our imports of live cattle
increased from $4,000 head in 1906 tt
326. 900 in 1918. In December 1908
the reserve stock of beef in the coolers
of this country amounted to 2S5,5OO.
900 pounds, in 1910 it had diminished
to 49,, 100000 pounds, and in 1912 il
was estimated to be but some $4,000,
600 pounds. These figures are worthy
of careful consideration by both con
sumer Of meats and the producer OF
beef.
At present there is great deal OF
speculation as to what effect the new
tariff law, which has placed meat on
the free list will have in the cost and
supply of beef in this country. II
may serve temporarily to somewhat re
duce the cost of beef but it will moi
have a permanent influence on the in
dustry. This is due to the face thai
Europe is meat hungry, thus will bic
against our people for the surplus
meat of the Argentine. Australian ant
and other exporting countries. Ever
the most optimistic believers in free
meat figure at the very outside tina
not more than 400 head of cattle pei
week or 100000 pounds of beef car
be expected. This amount would bare
ly furnish enough beef for our annua
increase in population. The very low
est estimate on our annual per capita
beef consumption pace the amount a
Sc pounds per person, or l4,4OO,O'
pounds per day, thus our people would
eat the entire amount Of anticipated
yearly importation of beef, some 100,
100000 pounds in about seven days.
In my judgment the days of cheaI
beef for the American consumer arr
a thing Of the past. Beef cattle were
grown in former days on free land O.
land very low in value in comparison
to present day land values. The pres
ent prices of land, feed and labor MAKE
it absolutely impossible to produce
cheap beef. The farmer is not t.
blame for this as he cannot affort
to, and what is more he is not goin:
to produce beef for prices below wha
his corn and other crops are worth il
the open market. A great deal ha
been said about the packer Robin!
the people. At the present time he il
compelled to utilize every by-produd
of the animal to come out even in thu
business in the open market. For in
stance take as in an illustration thu
chicago quotation for the week endin!
October 4, 1913, on beef cattle on foo
and fresh beef on the hooks. Primo
steers cost the packer at least cent
on the hoof or 1900 pound steer cos
Sos. Such a steer would dress on
about $50 pounds of beef. This bee
was sold by the carcass for 12.5 cent
or 1920 to the retailer. Thus tn
packer had to get $1,000 of the pul
chase price of the steer from the hid
and offal before he had his origina
| investment back. His labor, lntereS
on investment, risk through loss an
| profits had all come out Of what tn
country butcher discards as waste il
his business. In addition to this tn
packer after paying for the cattle O.
foot must submit the carcass to a mos
rigid health inspection. 1t often hal
pens that a portion of an animal Q
perhaps the entire animal is condemn
ed and sent to the rendering tank, thu
almost a total loss to the packer.
| What about the retail butcher? II
has to buy the entire carcass, thu
must sell it and out of the proceed
pay his rent. labor, city delivery {
the meat, stand the loss from bad a.
counts and make living. He find
that the great majority OF his cu'
toners call for steak and roasts an
hut few of them want the less desil