Virus ties up cattle markets

Demand, processing affected

-- THEY'RE NOT EVEN BREAKINGEVEN.

NINE ON YOUR SIDE'SCRAIG SMITH REPORTS -- THEVIRUS IS EFFECTING FOODPRODUCTIONS -- FROM THEPASTURE -- TO THE PACKINGPLANT -- TO YOUR POCKET.IN COCHISE COUNTY JOHN LADD ISSEEING THE PANDEMIC DISRUPTTHE DEMAND FOR HIS CATTLE ANDDRIVE PRICES SO LOW HE'SSEEING SIX HUNDRED POUNDSTEERS WHICH WOULD HAVE SOLDFOR A DOLLAR SIXTY A POUNDGOING FOR A DOLLAR A POUND.

HESAYS IT HURT WHEN DEMAND FROMRESTAURANTS FELL,---THEN MORETROUBLE PILED ON.

JOHN LADD/RANCHER: 3:26 AND YOU KNOW THESCHOOLS AND EVERYTHING THATTHERE WAS A SNOWBALL EFFECTWHICH, WHEN YOU'RE LOSING 25CENTS A POUND.

YOU KNOW THAT'SA PRETTY BIG DEAL BUT YEAH YOUCOULD PROBABLY SURVIVE ON THATBUT THEN WHEN YOU'RE GOINGDOWN 60 CENTS A TOWN.

YOU'RENOT EVEN BREAKING EVEN.

3:47:21 AT THE WILLCOX LIVESTOCKAUCTION, SONNY SHORES ISSEEING JUST A FRACTION OF THECATTLE BUYERS HE'D NORMALLYSEE BUYING ANIMALS FOR FEEDLOTS TO FATTEN UP.

HE SAYSWITH LOW PRICES, LOW DEMANDAND THE CHALLENGE OF KEEPINGYOUR DISTANCE.

HE'S SEEING 15TO 20 BUYERS INSTEAD OF 50 OR60.

2:59 IT'S MADE IT REALDIFFICULT FOR THE BUYERS ANDWE'VE DONE A LOT OF ONLINESTUFF.

YOU KNOW WE HAVE A LOTOF LITTLE LOCAL BUYERS THATHAVE COME IN AND BUY A HANDFULOF CATTLE AND I THINK WE'VELOST A LOT OF THEM, YOU KNOW,OVER THE LAST TWO MONTHS,WE'RE STILL GETTING A FEW OFTHEM BUT A LOT OF THEM ARESTAYING HOME THAT NORMALLYWOULD COME.

3:19 BOTH MEN SAYSTHE REAL PROFIT IS AT THEPACKING HOUSES BUT VIRUSOUTBREAKS HAVE FORCED SOME OFTHEM TO CLOSE.

AT UNIVERSITYOF ARIZONA, DOCTOR SAM GARCIARUNS A SMALL PACKING HOUSE ASPART OF THE AGRICULTUREPROGRAM AND TRACKS THE UPS ANDDOWNS OF THE MARKET.

HE SAYSTHE MEAT INDUSTRY USES PACKINGHOUSES SO LARGE IT DISRUPTSTHE MARKETS IF JUST ONE PLANTHAS A PROBLEM.

HE SAYS IN THECHAIN THAT STARTS IN THEPASTURE AND ENDS AT YOUR PLATECONSUMERS ARE PUMPING UP THEPRICES BY BUYING MORE THANTHEY REALLY NEED.

3:38 IFCUSTOMERS ARE PANIC BUYINGTHAT'S THAT'S WHERE YOU END UPWITH A PROBLEM OF SHORTAGES INTHE GROCERY STORE AND THENPRICES INCREASE.

IF THEY WOULDJUST BUY THE NORMAL AMOUNTS ITHINK WE SHOULD BE OKAY, 3:51CRAIG SMITH, KGUN9 ON YOURSIDESTIMULUS PACKAGES TO BOTHIN