But there is one thing I DO know, and that is we have high calf prices (if you’re buying to put on feed) and we have high corn prices (if you’re buying corn to put in those cattle), and the feedlot sector has been sustaining some horrible losses during the last 15-18 months.
T-bones, sirloins, filets and strips—these are the beef cuts referred to as “middle meats.” Such steaks make up 12% of the carcass, but represent just under half of its total value. That and the difference in cooking method lead many to believe it’s the only place where beef grades matter. Not according to experts like longtime market reporter Bruce Longo, of Urner Barry, and the data he tracks.
Selling fed cattle on a live basis is no longer standard practice, and some day it could end up as no more than historical reference. “The old selling-them-live method has given way to formula sales,” says Mark McCully, assistant vice president for Certified Angus Beef LLC (CAB). Data from Cattle-Fax and the U.S. Department of Agriculture shows a sharp decline in cash sales in the past seven years, from 52.1% in 2005 to just 26% in 2012. The inverse of that is the steep gain in negotiated sales, like grid marketing and other arrangements, which moved up from less than half of sales to more than three-quarters during those years.
Getting cattle bought right. That’s normally a feeder’s first challenge, but today it’s just plain getting cattle.
“The total size of the cattle industry has been shrinking, and shrinking rather abruptly for the last couple of years,” said Mike Sands, Informa Economics vice president.
Some cattle grow like weeds; some hit the high-grade targets. Some do both, some neither. That’s the way it goes in the world of commodity cattle. But cattle can be so much more, adding profit throughout the supply chain.
Of all the words that could describe Pratt Feeders, “quality” best fits the staff, the cattle they feed and the way they feed them. Over the past year, the south-central Kansas yard has ramped up its connection with the “Q” word.
It is a big decision, but it can be painless and pretty easy. If you’ve decided you want to feed your calves, partner with a feedlot or just build relationships with one you can market to directly, it just takes a little homework.
Some people set out to make a lasting change on their industry, but Max Deets, Beloit, Kan., says he never thought of himself in that light. Instead the cattle feeder’s natural leadership ability, quest for improvement and genuine respect for others led him to some of the most influential roles in the beef business.
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