2) an increasing price spread between ranch gate prices and wholesale prices, as well as ranch gate prices and retail prices;
3) a shrinking number of U.S. cattle operations while domestic beef consumption keeps increasing;
4) an inability for domestic beef production to keep pace with increased beef consumption;
5) an inability for domestic beef production to maintain
its share of the total available U.S. beef supply;
6) a long-run lack of profitability for U.S. cattle feeders while retail beef prices climb to record levels;
7) an increase in gross packer margins while cattle feeders suffer extended losses;
8) an above-the-five-year-average retail beef price while cow/calf producers receive below-the-five-year-average prices for calves;
9) a historical depression in cattle prices when U.S. beef exports rise to record levels;
10) a shrinking number of states that continue to receive above-the-national-average cattle price;
11) a disruption in the historical U.S. cattle cycle; and,
12) a significant disparity in regional weekly cattle prices.
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In addition, R-CALFUSA explained why the current structure of the U.S. cattle industry makes it highly susceptible to manipulation: the high concentration both in the industryà ??s feedlot sector and the meatpacking sector, as well as a unique characteristic of the cattle industry itself the perishable nature of slaughter-ready cattle.Â
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