panning,' Saturday, Dec. 4, 1976
50
Beef
By DIETER KRIEG
HARRISBURG - The beef
industry has a “very, very
bright future,” according to
John Chohlis, manager of
cattle chows for the Ralston-
Purina Company of St.
Louis, Mo. Chohlis has been
involved in the industry for
several decades and made
the' remark at the annual
meeting of the Pennsylvania
Livestock Association, held
here last month.
Demand for beef and
consumption of it will con
tinue to grow if the fanning
industry remains in a profit
orientated economy. Chohlis
unhesitatingly praises the
virtues of free enterprise and
profit and considers these
aspects of American
business to be vital to our
existence as a free and
prosperous nation. (See page
10 of the November 13 issue
of Lancaster Farming).
With per capita beef
consumption figures heading
for a new all-time high this
year (127 pounds per person)
Chohlis described 1976 as a
great year for the consumer,
but a lousy one for cat
tlemen. “The vast majority
will lose money in 1976,” he
exclaimed to the dinner
meeting at the Host Motor
Inn.
The feed company
executive predicts further
vertical integration within
the beef business. “It will
gather momentum,” Chohlis
said, “as the producer
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industry future
‘very bright 9
discovers that the only way
to get bigger profits is to go
into butchering and retailing
himself.”
Symbiotic integration is
also a happening being
discussed by industry
leaders. This business
venture directs businesses to
branch out in directions
which are fairly closely
related to their main en
terprise. An example would
be Ralston-Purina - a feeds
manufacturer - going into
either the grain raising or
cattle feeding businesses.
Chohlis claims this does not
always turn out as profitable
as what it may look at first
and is therefore convinced
that vertical integration is
the stronger and dominant
business trend.
According to Chohlis,
vertical integration is
happening faster in the beef
industry than in other areas
because of the turmoil beef
producers have experienced
during the last few years.
Not referring specifically
to prices, Chohlis announced
“You ain’t see nothing yet if
you think a lot of changes
have taken place in the beef
business during the last few
years.” He predicts many
more upheavals and bases
this conclusion on what he
has seen and heard at packer
conventions. Some
significant changes in the
methods of processing,
ram mown.
INCLINE AUGERS
Lancaster Co
John Chohlis believes in America’s cattle in
dustry, free enterprise, and freedom.
packing, marketing and
handling are on the way.
“And let’s not forget the
hamburger generation,”
Chohlis added. Of the 127
pounds of beef consumed this
year by the average
American, 45 were in the
form of patties produced at
such establishments as
ygS.
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(Continued on Page 52]
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