Latest / CattleUSA Daily / 259: What a JBS Greeley Strike Could Mean for the Cattle Market with John Campbell

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259: What a JBS Greeley Strike Could Mean for the Cattle Market with John Campbell · CattleUSA Daily

• 0:00
  In today's episode with John Campbell, we are talking all
• 0:03
  things cattle market. We have seen a really
• 0:06
  encouraging week across the United States in the cattle
• 0:08
  market and John is here to share everything that we are seeing in
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  the live markets over the past week and at the beginning of
• 0:14
  this week. So he's here to share all about
• 0:17
  that. We talked about some rural
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  community development issues and when we're talking about packing
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  plans and some other things that go into some of these rural
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  communities and the impact that closures have on them.
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  And then we also have a All John podcast.
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  We've got some humor for everyone at the end.
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  And I will encourage you right now if you're listening on any
• 0:34
  of our podcast platforms, although we love having you
• 0:37
  there. John has some really great
• 0:39
  visual aids in this podcast episode.
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  So if you can run over to YouTube and watch it there, I
• 0:43
  know that you will appreciate it as well.
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  So without further ado, let's go ahead and hop into this podcast
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  episode with John Campbell. Welcome to the Cattle USA Daily
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  Podcast, your go to source for the latest livestock markets,
• 1:00
  industry insights and the update shaping agriculture today.
• 1:03
  I'm your host, Lauren Moylan, a passionate advocate for
• 1:06
  agriculture, here to keep you informed and connected.
• 1:09
  Now let's dive into today's episode.
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  John, welcome back to the podcast.
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  We are so happy to be here once again.
• 1:19
  I am once again on the road, not in the studio for another one of
• 1:24
  our podcast recordings. I I genuinely think that we
• 1:27
  record podcasts more often when I'm not in the studio than when
• 1:29
  I am, but here we are. We're going to have some fun
• 1:32
  with it today. I have been informed that my
• 1:35
  caffeine should maybe stay stationary on the table because
• 1:38
  otherwise John might make me speed it up today with some
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  laughter. Go ahead, get your last wig.
• 1:44
  This is your last chance. She's been up for four days
• 1:49
  straight. I mean she just living off
• 1:53
  coffee. I needed an IV.
• 1:56
  I'm very serious about that. When someone out there creates
• 2:00
  like a way to just tap into a vein with some pure caffeine for
• 2:03
  me and I can just wear it like a little like glucose insulin
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  pump. Yeah, I'd, I'd be, I'll be the
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  first to trial it. I'll sign up for that test
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  trial. To be my age and it doesn't do
• 2:15
  any good anymore and you think it's going to be better.
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  So you know, you start laser it by the pot, not the cup.
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  Yes, yes, yes, yes. This is unfortunately only my
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  second cup of the day and oh wow, we're pretty empty so.
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  You're pacing yourself though. Well, it I know it'd be what is
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  it, 1130 back there? Yeah, it's 11:30 central time.
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  So we're we're pacing it today, I tell you what.
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  Jeez. Well, Mr. John, what is
• 2:49
  happening in the world of our markets today?
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  Well, you know everything pretty good.
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  You go back early in the week and I'll reflect on today in a
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  minute, but you're in a lot of 34113 cattle.
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  We had a good run. Of course we had a snow day the
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  week before, but these light cabs, I thought steady the 5
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  bucks better. It was just like we had all
• 3:13
  kinds of people from all across the country here and on cattle
• 3:17
  USA and really, really active and we had some good cattle, but
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  the light cabs as much as 5 bucks better.
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  They had some 325 LB steers up to 675, some 4 weight steers to
• 3:32
  595. Our best 520 weight steers
• 3:36
  bought brought to 520. Over on the heifer side, some
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  Charlotte Cross heifers weighing 310 at five 94110 LB.
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  These were actually Red Angus heifers, 570 a pound and had a
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  long string of 300 and some and the five weight black heifers
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  off of them. Of course all weaned at 497.
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  You get into the Stocker heifers, a tremendous selection
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  of thin, light, handy, weight weaned effers and it was just
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  you couldn't even quote it, it was so much higher.
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  We call it 410 to 456. The feeding effer market had a
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  few loads of feeding effers. I thought they were 5 to 8
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  higher here Tuesday from 331 up to 375.
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  Here's some 565 LB effers. At 4:56 we had 105 Eddie effers
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  weighing 620. They went up to South Dakota at
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  522 a pound. The guy was right here in the
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  seats, some 7 weight heifers going to Iowa at 375 a pound and
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  some big 850 weight Charlotte cross heifers at 354.
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  The steers, I don't know, 5 to 15 higher.
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  You compare them to last week, 580 weight steers at 480.
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  We had a package of like really nice black steers weighed like
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  565 bring 5 35I. I mean it was right at $3000 a
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  head, 6 weight steers up to 449 feeding steers, some 7 weight
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  black steers to four O 4 and the brothers to those Charlotte
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  cross heifers weighed 9 and brought 350 a pound.
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  So really, really active here. It was just, I don't know, it
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  was just eye opening and, and I think a lot of it was the
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  reaction, you know, the, the cattle inventory report had
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  finally kind of hit home and everybody thought, oh cripes,
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  this just confirms that we're still out of cattle.
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  The calf crops down and everybody really, really came,
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  came to the front. I thought here in a lot anyway.
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  Yeah, It's really encouraging to see, I think across the industry
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  that we are still coming to the front and that there is still
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  some forward momentum going, even with some discouraging
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  numbers coming out from those reports.
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  And I mean, if Dan was on right now, Dan would say we need to
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  shut the government back down because I don't want any of
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  those damn reports anymore. So I mean, it's, yeah, exactly.
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  There's there's some some definite authority behind that
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  and where he's coming from because it's, it's hard to know
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  how much we can really trust a lot of those numbers that are
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  coming out. I've been asked a few times this
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  week at Cattle Condom what my thoughts are on heifer retention
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  and things that are coming out there because the numbers are
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  not fully following what everyone's predicting.
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  I personally am in the boat of the early indicators are there.
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  We're seeing some of it. It's not widespread across the
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  industry though. I think it's a little preemptive
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  to be really relying on that right now.
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  And so just going back to those numbers and everything that
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  we're seeing, it is encouraging to see people still coming to
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  the front. Yeah, yeah, exactly.
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  That city with 36138 cattle, this would have been yesterday.
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  Really a mirror image of how we got along.
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  I thought they had some 5 weight steers in Dodge City AT527620
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  weight steers at 456, their best 7 weight steers at four O 1 and
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  some big 8 weight steers at 373. Heffers in Dodge City KS 4 and
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  1/4 at 5:40 a pound. Their best 5 weight effort
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  brought 457 6 weight heifers right up against 4 dollars 396.
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  They did sell some 7 weight heifers at 371 and that 8 weight
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  heifers at 346. Really with a light and I don't
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  mean a light run but 15110 cattle.
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  Riverton, WY had an outstanding market their winter livestock in
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  Riverton and listen to some of these prices. 433 LB stairs at
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  580-6507 at 5:43 and some 6 weight steers up to 476.
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  Riverton, WY. Heifers weigh in four at
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  540-2500 at 480 and six weight efforts up to four 1475.
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  But Jeff would have had the kind and the condition in some
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  numbers that merited that. But he would agree.
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  Just an outstanding market all the way around.
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  Everybody pretty pumped up here the the beginning of the week
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  anyway. Yes, we all got out of that
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  winter storm slump that we were in.
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  And it's encouraging to see people come back around and come
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  swinging a week after having to take some time off or just not
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  see people show up quite the way that they had in previous weeks
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  to the market because of the winter storms and everything
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  going on with that. So very encouraging to see.
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  Well, John, what do you have for us today?
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  What can of worms are we opening or what pot are we stirring
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  today? And are you going to get me in
• 9:09
  trouble? Do I as my name going to people
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  put on a no entry list for certain events or like, OK, I
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  just which I'm fine with. I'm fine with.
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  I love stirring a good pot, but I just I just need to be
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  prepared. I just need to be prepared if
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  I'm going to get escorted off the premises or what we're doing
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  here. But I'm excited what you got for
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  us today. Well.
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  I got a text last night from a feed lot guy up in Northern
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  Colorado and JBS at Greeley. All the workers voted yesterday
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  to strike over unfair labor practice at at the packing
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  plant. 99% of the union members voted to strike and now they
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  they are not striking now. Union officials said the timing
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  of any strike will be determined at a later date.
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  But the the union president stated that they claimed bad
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  faith conduct and unfair labor practices at JBS.
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  And the union claimed that if workers strike, JBS had said
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  they would retaliate and hold the proposed bonuses from
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  employees and lump sum provision or a pension payments rather.
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  Now this is all you know second hand, but this is a quote from
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  the labour head of the union head.
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  They also said that JBS was an intimidating and and threatened
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  retaliate retaliation against workers who were willing to go
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  ahead and conduct the strike. And that JBS is increasing the
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  chain speeds, creating dangerous working conditions.
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  These are just outlining the reason behind the strike and
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  reducing hours for workers and making it more unsafe.
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  I think the biggest dispute was over healthcare that we all kind
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  of have to deal with, but they stated that the healthcare costs
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  paid by employees at JBS was was going to double and that was the
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  big deal. JBSI guess not willing to step
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  in and and take any of the pressure off the the healthcare
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  deal. So a lot of people don't realize
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  it, but JBS is the largest beef plant.
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  What I read in the United States are Greeley, Co and that's where
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  their corporate headquarters are.
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  It's kind of the flagship of JBS and they employ 3000 people
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  there and kill 5000 cattle a day.
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  So years ago and this would be before your Time Lord, but back
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  before JBS and before Con Agra, the Greeley plant was all was at
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  one time Montfort of Colorado owned by the Montfort family.
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  And right out of college I went to work for Montfort as a
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  quality control person in the portions food plant.
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  And this would have been early 1980s.
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  And they voted to go on strike. And it was, as I remember, it
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  was something pretty petty. Lauren, you, you'd worked there
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  12 years and I'd worked there five.
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  And they always gave all their employees a beef box at
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  Christmas time. And I was upset because you got
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  two more hamburger patties than I did.
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  And I'd worked there longer. But they none of us thought
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  Kenny Montfort would close it down.
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  But he did. He he told him we can't function
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  in this environment. And I don't know if you can make
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  the comparison, but maybe not the best time to strike when the
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  Packers supposedly is really behind the 8 ball and and losing
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  money that their timing may not be the be the greatest, but just
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  a reflection. Back in 1980, Montford put a
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  chain around the front door and shut it down the whole plant and
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  it was 1982. I think it was two years later
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  that they decided they they would entertain the thought of
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  open it back up. But just to tell you how these
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  big plants affect these communities when they go down.
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  I mean, back we've let them get so big.
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  You know, it costs a little town back then of Greeley Co.
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  It's big now, but 800,000 in annual revenue just just from
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  taxes. When when Montfort closed down,
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  you know, back then they employed 950 meat cutters.
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  And I was just fresh out of college.
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  And when they decided to open it back up, they put me in a little
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  cubicle and behind the desk and I was going to interview
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  applicants wanting to come come back to work.
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  And it was interesting. It made all the front pages of
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  the Greeley Tribune there they had, they were going to open
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  back up with 300 jobs and they had nearly 2000 applicants.
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  There was lines of people when I would come in blocks and blocks
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  long in downtown Greeley, Co lined up to interview for these
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  jobs. And those people had originally
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  been making at the time a phenomenal wage, $8 to 920 an
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  hour. And it was amazing. 2000 of them
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  were lined up to come back, make 4/25 an hour and I'm not putting
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  it up or putting it down. That was a situation as it as it
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  was, and Needless to say, when they did reopen it, why they
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  rejected an attempt to unionize the next time they they could
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  form a form a union. And I'm not saying you what what
• 14:54
  unions were originally designed to do was great.
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  You've read the the Jungle or I think is Upton Sinclair and you
• 15:01
  know, child labor and all this all that.
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  But it really kind of came back to bite them in the in the ass
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  this time. It can be these monopolies can
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  be just devastating to towns and populations that where they
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  employ so many people and get so big.
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  Just kind of a interesting tidbit also to tell you out, and
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  I'm not put taking anything away from the Montford family.
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  I know him, but I was also given a little list of the ringleaders
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  and probably not a good idea to go ahead and recommend them for
• 15:30
  a job when they come back through the line.
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  I had people with PhDs in downtown Greeley show up with a
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  suit and tie to be a meat cutter, make $4.00 an hour.
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  Interesting. Yeah.
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  Very interesting. And I think that you make such a
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  great point on the whole topic of rural communities in the
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  development and when these packing plants and when these
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  large corporations decide to come into these rural
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  communities, it is major for rural economic development and
• 15:58
  it is so impactful for our communities.
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  I mean you look at communities across the Midwest that the only
• 16:05
  reason there is a big city there is because of a packing plant or
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  because of a large industry. You can even look outside of the
• 16:12
  packing working industry and if a large corporation decides to
• 16:15
  come in and utilize that space that that community is offering,
• 16:20
  it is a major economic boom. And when that company decides to
• 16:24
  leave, it is a major economic decline, not only in taxes, but
• 16:28
  in all of those hundreds or thousands of people that are now
• 16:32
  out of jobs. We're looking at like, and when
• 16:34
  we're talking hundreds of thousands of dollars in taxes,
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  we're talking roads, we're talking school systems, we're
• 16:39
  talking everything else that that tax system is providing for
• 16:43
  that rural community at that local level.
• 16:46
  And I mean, I lived South of Lexington for three years of my
• 16:49
  life. That community was built on a
• 16:53
  packing plant being there not, not initially, not, I mean, when
• 16:57
  we look at the foundation of Lexington a long, long time ago,
• 17:00
  not initially, but now the infrastructure of that city is
• 17:03
  built around was built around Tyson and the culture was built
• 17:08
  around Tyson. Higher community there was
• 17:11
  really formed around that. And it's devastating to see what
• 17:15
  a closure of a large corporation, a large company in
• 17:18
  these rural communities across the United States does to these
• 17:21
  communities and does to these small towns.
• 17:23
  Yeah, yeah. And you, you, you can go places
• 17:25
  like Wyoming or, you know, other places and driving through there
• 17:30
  and, and just communities that depended on oil pipeline or, or
• 17:34
  gas or development. And.
• 17:37
  And I know we were traveling up through there one time and boy,
• 17:40
  you saw that huge brand new school and, and big softball
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  parks and all these improvements and everything.
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  And you talk to local guy and he said or they, when they killed
• 17:51
  the gas and oil, he said here we've got this huge school.
• 17:55
  And he said there's nobody in it.
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  Or, you know, we've got all of this infrastructure and it's
• 18:00
  just essentially all closed down because nobody's, nobody's here
• 18:04
  anymore. So we don't see the, the full
• 18:07
  effect of it unless you're actually there and involved with
• 18:11
  it. We kind of treated at an arm's
• 18:13
  length. But boy, it, it, it can be
• 18:15
  horrible. You know, we, we, we know the
• 18:18
  answer. We need more small businesses,
• 18:21
  small entities and, and like that.
• 18:24
  And that's, that's really where a concerted effort needs to be
• 18:28
  in to grow those people and incentivize those people.
• 18:32
  And it's just a healthier system all the way around.
• 18:37
  Absolutely. I think when you look at it's
• 18:40
  the concept of putting all of your eggs in one basket, right?
• 18:43
  If we are looking at these small and rural communities and all of
• 18:45
  our eggs are in one large corporations basket and we're
• 18:49
  not encouraging small businesses to come in or just other
• 18:53
  economic development factors to come in and really revitalize
• 18:56
  these towns or these communities, we are losing rural
• 18:59
  Americans at a staggering rate. People aren't moving back to
• 19:03
  rural America at the rates that they used to.
• 19:05
  They're going off to college and then they're going and getting a
• 19:07
  job in the big city. Like we, there's a whole
• 19:10
  economic development factor in this.
• 19:11
  And when we look at ourselves as ranchers and as people involved
• 19:15
  in the cattle industry, we are pillars of our communities.
• 19:18
  If we have strong ranching and farming individuals and
• 19:21
  communities, you tend to see a really strong community behind
• 19:25
  that as well. But I mean, you look at the
• 19:27
  entire line of this from a cow calf operation all the way to
• 19:30
  that end product. And that's what I mean, you look
• 19:33
  in Southwest Kansas, that is why we have a dairy production
• 19:36
  facility right next to all of our dairies.
• 19:39
  It's, it's great to have it all close.
• 19:41
  But when you are looking at those communities and they rely
• 19:44
  so heavily on these different businesses, it can be really
• 19:48
  scary to sit back and think that one thing could happen and one
• 19:52
  domino could fall and it can really wreck, wreck some rural
• 19:55
  communities and wreck some lives.
• 19:56
  Because I think that's what it all comes back to is we're not
• 19:59
  talking about just 30,000 feet general populations.
• 20:04
  We're talking about individual families and their livelihoods.
• 20:07
  Well, and and agriculture people are are 100% vested in the
• 20:12
  community. You know that they're not a come
• 20:15
  and go when they set up shop, they're there for the long term.
• 20:18
  And so, you know, it's the very nature of our business and de
• 20:23
  iterate what you said that gives you a core foundation of the
• 20:27
  people that are going to be the pillars and the leaders of the
• 20:31
  community because it's important to them, the long run of what
• 20:37
  this community does because they've got kids, they've got
• 20:39
  grandkids. Like I said, they're vested in
• 20:43
  investing into the future because it's in their their best
• 20:47
  interest. And that's what they're all
• 20:48
  about. And it's just that it's a
• 20:50
  healthier environment, not, and no doubt there needs to be a
• 20:52
  balance, but when you lose that segment of the population and
• 20:58
  you're dependent on, I don't mean transient people, but
• 21:02
  people that are here for a while, gone for a while.
• 21:04
  You see it happen a lot, you know, And it's, it can be sad
• 21:08
  when that population overwhelms a, a community to the point that
• 21:13
  whether it's through competition or, or whatever it may be, it,
• 21:17
  it, it, it, it is destructive to the foundation that is there.
• 21:22
  Then when they leave, well boy you, you've got nothing left.
• 21:27
  Absolutely. Back on the current events, what
• 21:29
  do you think is going to happen with this strike that we're
• 21:31
  seeing? Well, luckily I I have an answer
• 21:36
  and you know, if you will look, we are here at Thursday at about
• 21:41
  10:45. Futures are down 5600 points.
• 21:44
  I've been down more because of the announcement, but I am happy
• 21:48
  to be the first to report that on Monday will be the first of
• 21:53
  several limit up days in the Commodity Futures.
• 21:58
  And you ask why? How?
• 22:01
  Well, it's Super Bowl 60 on Sunday, so that that's it.
• 22:07
  And what a better place to showcase true animal husbandry
• 22:13
  practices than Super Bowl 60. And the animal industry
• 22:18
  volunteers will be on hand to provide all the performers free
• 22:22
  of charge at the halftime show with free lice and grub
• 22:29
  treatment. And just trying to showcase
• 22:31
  animal agriculture. If they identify as a furry, a
• 22:36
  rabbit, they can have their activities, their health and
• 22:40
  movement monitored by their very own animal ID tag.
• 22:46
  And you know, really, Lauren? Most importantly, because of the
• 22:52
  explosive nature in the rabbit reproduction, licensed
• 22:56
  veterinarians will also be on hand to humanely provide them
• 23:01
  with an alternative lifestyle. And my prediction is those who
• 23:07
  manage cattle speculation, hedge funds and the computer
• 23:11
  algorithms will be so overwhelmed by our industry's
• 23:16
  sincere effort and answer to this crisis that Monday morning
• 23:22
  a wave of appreciation will hit the cattle futures and will be
• 23:26
  up the limit. That is my prediction.
• 23:29
  That is that is a solid prediction.
• 23:30
  I can I can absolutely say that a very unique prediction.
• 23:34
  I enjoyed your your props. I am very glad that I didn't
• 23:39
  have any coffee in my mouth at that time.
• 23:41
  And for everyone listening to this podcast episode, I just
• 23:45
  want to say that you you you're missing out.
• 23:47
  You're missing out. I'm going to need you.
• 23:49
  I'm going to need you to go run over to YouTube real quick and
• 23:52
  see the. Are you Super Bowl digging?
• 23:57
  Just volunteering? Just trying to do my part you
• 24:01
  know. You are, you really are.
• 24:03
  I love our focus on animal husbandry and on responsible
• 24:08
  reproduction within our animal communities and everything that
• 24:13
  you are, you are offering there. You're truly one-of-a-kind,
• 24:16
  John, and you are, you're really sacrificing for the community
• 24:20
  and I appreciate your willingness, your willingness to
• 24:23
  serve in that way. Are you?
• 24:25
  Are you going to be the one helping the veterinary at this
• 24:29
  little pop up event? Well, you know, I came up with
• 24:33
  the idea so you know, I've done, I've done my part.
• 24:37
  So if you are a bad money, you better maybe watch out.
• 24:42
  It's all volunteer though. Absolutely, absolutely.
• 24:46
  All volunteer. All volunteer basis.
• 24:48
  I feel like this is a pretty safe space to say this, and I
• 24:51
  may get backlash for this and you know what?
• 24:53
  That's OK. But you know what I'm looking
• 24:55
  forward to tonight, John, Guess what I'm doing?
• 24:59
  I am going to a live filming of Michael Knowles.
• 25:05
  Do you know who that is? No, he's with the Daily.
• 25:09
  He's so he's with the Daily Wire and he has this new program
• 25:14
  called Bar Fight and they're doing a live filming of it here
• 25:17
  in Nashville on Broadway tonight.
• 25:19
  And it's pretty much him and three liberals.
• 25:21
  And he sits down and fights like he fights him in a bar.
• 25:26
  Not like not punching bags, but like that's a live filming, like
• 25:29
  audio. And I am so excited to sit back,
• 25:33
  have a nice little cocktail and enjoy my evening in that way.
• 25:37
  So I felt like I needed to share this with you because you are.
• 25:40
  You are missing out on this one event that I think that you
• 25:44
  would genuinely enjoy. I.
• 25:45
  Would I would like that I man, I can't stand the tariff on that
• 25:51
  cattle con deal, not not to mention the smell.
• 25:55
  And this is where John gets me put on a no entry list.
• 25:58
  Thank you and good night. Oh my gosh.
• 26:03
  Well, it's been a good one. John.
• 26:06
  Anything else that we need to chat about before we wrap it up
• 26:09
  today other than our Bunny castrating practices?
• 26:16
  Well, that was. I didn't say that, just he
• 26:22
  didn't. Say anything?
• 26:24
  Good luck out there boy. You're you're holding your own.
• 26:27
  Pretty good for no sleep and only two cups of coffee.
• 26:31
  I can promise you my flight is at noon tomorrow and I will
• 26:34
  probably be crawling to the airport at that point in time.
• 26:37
  But we're we're surviving if you need me this weekend.
• 26:40
  No, you don't. I'm probably going to be in a
• 26:42
  sleep coma. Well, John, as always, thank you
• 26:45
  for your time. Thank you for your insight, your
• 26:46
  candor and some humor. It was it was nice to come on
• 26:50
  and get a good laugh and I always, I always know I can come
• 26:53
  prepared to laugh my butt off when we get on a podcast
• 26:56
  together. The the props were great.
• 26:58
  If again, if you're listening to this episode, you need to go run
• 27:01
  over to YouTube and go watch it because you'll, you'll enjoy it
• 27:04
  even more in that aspect. And if you would like to extend
• 27:08
  John's idea and put it into action, hit him up.
• 27:12
  I'm sure you could probably get a great volunteer team out of
• 27:15
  the Eastern Colorado sector on with John and his buddies.
• 27:20
  So right. And we have a long list of
• 27:23
  available sponsors. Exactly, exactly.
• 27:27
  We're we're ready. He's he's ready to go.
• 27:29
  He just needs someone to execute it.
• 27:31
  And you can get some volunteers on that aspect.
• 27:34
  So Oh well, John, thank you as always for your time.
• 27:38
  And to all of our listeners, we will see you all next time on
• 27:42
  another episode of the Cattle USA Daily podcast.
• 27:45
  Have a good one y'all.