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#048 - Exactly How Trump Is Impacting The Cattle Market · Dollars In The Dirt

• 0:00
  Trump has signed an order aimed at giving American producers more
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  options to process and sell their own beef. Most producers look
• 0:06
  at that and think, well that's America, it doesn't have much to do with us. After
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  helping hundreds of farmers secure over a billion dollars in finance, I
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  can tell you that it matters because the same issue exists here. A
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  small group of huge processors own a lot of capacity. which
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  can leave producers as price takers. So in this video, I'm
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  going to break down what Trump's trying to do, whether Australia should
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  be looking at something similar and what it could mean for cattle producers here.
• 0:32
  The headline is pretty straightforward. Trump has signed an executive action
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  in the US. It's aimed at giving American farmers and ranchers more
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  options and more access to customers beyond the normal
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  channels. And the issue is processing concentration. In
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  America, a lot of beef moves through big processes. And
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  in Australia, we've got a similar issue. A small number
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  of large processes control a lot of capacity. It
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  just means the chain is concentrated. So here's the issue. Say
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  you're a cattle producer, you've bred the animal, you've carried the feed
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  risk, you've carried the seasonal risk, and you've carried the
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  price risk. But at sale time, your options can still be
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  limited. But with only a few major processing pathways, producers
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  can become price takers. And that's the part Trump is trying to
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  address. The order supports small and regional processors. It
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  aims to modernise the inspection process. It aims to expand access
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  for eligible meat products. And it includes support for loan programs
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  for small and regional processor. It doesn't mean food safety disappears.
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  It doesn't mean anyone can process meat anywhere. It doesn't
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  mean the market changes overnight. And the point is market
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  access. Can smaller operators get through the system properly?
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  Can regional processes build capacity? And can producers have
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  more pathways to reach customers? And that's the conversation. And
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  that's what matters here. This isn't just an American story. The
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  same processing pressures exist in Australia. So this
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  is really about market access and how much choice does
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  a processor have. By the way, if you're looking at buying a property or
• 2:06
  growing a business and you want to talk through what the finance could look like, book
• 2:09
  a free call. The link's in the description. I think it's worth talking about if
• 2:13
  Australia should be looking at something similar. We already have paddock-to-plate
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  businesses here. You see producers selling beef direct. You
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  see cattle processed, packed, and then delivered to customers. So
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  it's not a new idea. It's already happening. But the thing
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  is, it takes work, and there's regulation to deal with, and
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  you can't shortcut food safety, and you can't shortcut processing
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  standards. The question is different. Can we make it easier
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  for legitimate operators? Can regional processes grow, and
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  can producers access customers without dropping the standard? And
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  that's where the opportunity might be. If there were more pathways to
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  market, producers could have more choice. Not every producer would
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  use it, and not every producer should use it. But
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  some might. Say you've got a strong local brand, or
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  you've got customers already asking for beef, or you've got a product
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  people are willing to pay for, a direct market might make sense.
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  But for most family farms, the normal channels will still be
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  the main game. You still sell into the market that suits
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  your cattle, and that's the reality. But for the right producer, another
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  route could matter, and it could mean more control over the product. It
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  could mean more concentration, it could mean more connection with
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  the customer, and it could mean keeping more value in the business. This
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  is the part that gets people thinking. A producer might sell a beast for around
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  $2,000. And by the time that meat reaches retail, it could
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  be worth $6,000 or $7,000. And now that gap
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  isn't all profit. So you can just look at the retail price and
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  call it margin. But there's value in the chain. And right now, a
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  lot of that value sits after the farm gate. And that's the opportunity
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  people are looking at. Can they keep more of the end value? For
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  some producers, the answer might be yes, but it's not easy money.
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  It's not an instant second income stream. And it's not something
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  every grazing business should chase. If you're looking at it, the
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  first thing I look at is the market. Who's actually buying? And
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  how often are they buying? And that makes a big difference. Then
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  I look at the processing. Where is it being processed? How
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  reliable is that access? And what does it cost? Then
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  I look at the setup. Do you need working capital? Those
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  things matter. Because cash still matters. You
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  don't want a new idea to drain the business that pays the bills. Paddock
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  to plate can be the strong model for the right operator. It needs market,
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  compliance, infrastructure and execution. And without those things,
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  it's just a good idea. So Trump's announcement won't change the
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  Australian cattle market tomorrow, but it does raise a fair question. Should
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  Australian producers have more ways to reach the customer? Should
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  regional processing have more support? And should producers have
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  more opportunity beyond the farm gate? I think it's worth discussing.
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  We've already got producers doing paddock to plate well here in Australia. It
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  also won't suit plenty of producers. But things can be
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  true. For most family farms, the normal selling channels will
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  still make sense. But more market access gives producers
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  more options. What are your thoughts? Drop your comments below. And
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  if you're looking at growing your business, buying a property or working through how
• 5:15
  an opportunity could fit alongside your current operation, book a