Nobody likes to lose a customer, but to see a cattle feeder get emotional over the thought of a ranching client having to sell out… that’s when you know his heart is really in the business. Terry Beller, of Lindsay, Neb., can tell you the last time the Sandhills and points west received a measureable rain. It matters to his bottom line, certainly, but the owner-manager of the 6,000-head Beller Feedlot talks about ranchers dealing with drought as if one of his own children were facing a major obstacle.
When Daryl Strohbehn retired as an Iowa State Extension beef specialist there was one project he wasn’t ready to give up the reins to.
Since 2003, he has tracked the profit values for sires of calves enrolled in the Tri-County Steer Carcass Futurity (TCSCF). “To make things work in the cattle business today, it takes information based on sound data,” Strohbehn says. “I enjoy figuring out what that sound data is and what it might tell us.” The cooperative’s Sire Profit Analysis has grown from data on 35 sires in the initial report to 3,451sires evaluated in 2012.
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Selling fed cattle on a live basis is no longer standard practice, and some day it could end up as no more than historical reference.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.
A lot of people have asked Darrell Busby a lot of questions over the years. I’m one of them. He’s not only a great interview source, with years of knowledge and a knack for breaking down research into “why it matters to cattlemen,” but he’s also just plain one of the nicest guys I know.
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.
the marketing element is so important. In our segmented industry it’s often challenging to show a true marketing advantage when comparing a superior set of calves to a more common set on the same day.
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.
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