What I can tell you is the harvest of and the harvest of cows continue. And in a lot of cases, people are paying up for those animals to sell them at a €“ for a lesser cut out. So, that’s what I can tell you about it, Brady, anything you would add to that?
Brady Stewart: No, Donnie. Donnie, I think you covered it very well. We have a different situation today than we have in the past as well relative to some of the interest rate pressures. That certainly will have an impact as these ranchers decide to retain as well. So, that coupled with some of the weather and impacts that we see certainly create the uncertainty that you outlined.
Operator: Thank you. And our next question comes from Eric Larson with Seaport Research Partners.
Eric Larson: Hi. Yes. Thanks for taking my question. It’s on the beef cycle again. And it is €“ I guess it’s not surprising that we continue to see call it slaughter. But I guess the question that I have, and it’s related to this, we are at 50-year kind of low on these various cattle sectors. And it seems like the recovery for this will certainly take quite a bit longer than maybe I would have expected. Is that €“ and now when you have got new capacity coming on stream from some more competitors, what does the increase in capacity with lower and maybe more sustainable lower supplies mean for the mid to longer term margin for your business?
Donnie King: Yes, I will make a few comments, and Brady can step in on this. I mean I think you have described it very well in terms of what the levers are here. Everything you have said I think I agree with what you have said and how you characterize it. And you have also described this future state where there will be more packing capacity with fewer animals. And so if you build the capacity, these are €“ for these large plants, you can spend $1 billion to build the beef plant. So, if you spend $1 billion to get a beef plant, you are going to process animals. And so that could all likelihood drive up the price of the cattle that are available at that point. But you are going to get some pushback with the consumer if you try to cover that or try to get cut out to cover that.
So, I see all the same pressures and dynamics that you just outlined. And it’s going to take a bit to rebuild the herd. And once we get to whatever the bottom is, I mean we are looking at 2-plus years to be able to see some better times. Brady?
Brady Stewart: Thanks for that, Donnie. I think there is a couple of other factors that we need to consider as we come out of the cycle. And one of them is certainly relative to export demand. And we have seen an increase in terms of demand from our export partners relative to higher grading cattle. I think that is an anomaly relative to cycles that we have certainly seen in the past, and it’s something that we will be watching as well. Now, we have seen the strength that I mentioned earlier relative to some of the drop values in byproducts as well. So, certainly combining not only the supply factors that you touched on from a live cattle perspective, but also the demand factors that are going to come into play from both our export customers and our domestic customers is certainly a focal point for us.
Eric Larson: Thank you, guys.
Operator: Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn it back to management for any final remarks.
