Dark arts deployed by factories in an effort to flush out cheap stock
There are many tricks to be learned in the cattle business and one of the neater ones from the factories’ point of view is the self fulfilling prophecy.
It works a bit like this: factory bosses want to buy beef cheaper and target finishers by spreading stories of falling or potentially falling prices.
Last week, for example, I know of finishers who received unsolicited phone calls from factory agents touting base prices of €3.95- 3.90/kg with talk of possibly worse to come this week.
When challenged on the price, the story was simply repeated.
Obviously factories are sending very clear signals on where they want the price.
To make that happen, they need farmers to buy into the whole idea that if you put off selling stock you risk taking a lower price.
However, if you take that lower price because you’re afraid of what might happen you’re in effect helping to fulfil the factories prediction/prophecy as to where the price they “predicted” was going to go in the first place.
Did all this negative PR work?