Beef Buzz News
Emerging Segment in Beef Pipeline Gains Importance - Rabo Analyst Don Close Explains Grow Yards
Fri, 26 Apr 2019 10:04:34 CDT
When it comes to the beef cattle industry, we are quite familiar with the different sectors of the supply chain that become standard; those sectors being the cow/calf, stocker, feedyard and packer. However, a new report out from Rabo AgriFinance, suggests that a new sector has started to emerge in the industry. Rabo Senior Analyst Don Close sat down with Radio Oklahoma Ag Network Farm Director Ron Hays this week in New Orleans during the 2019 Cattle Industry Convention and Trade Show to talk about this rising niche market, dubbed “grow yards,” and the role they are taking on within the beef industry’s changing landscape. You can listen to their complete conversation by clicking or tapping the LISTEN BAR below at the bottom of the page.
Listen to the full conversation between Close and Hays over this emerging sector in the cattle industry
“We’re seeing that as the commercial feed yards have gotten bigger, both in size of yards and with the number of yard ownerships per company - just having the ability to handle either lightweight or high-risk cattle - is becoming increasingly difficult for those commercial feeders,” Close explained, setting up the current situation that continues to develop. “So, as a result they are turning more and more to the grow yard to have their cattle conditioned.”
The benefits of doing this, Close says, is that it enables companies to have a central collection point and provides them the opportunity to buy multiple weights of cattle instead of cattle from one narrow and highly competitive weight range, specifically those 800 weight cattle. While this means significant opportunity for established grow yard operators and emerging ones, Close also suggests that the growth in this sector could have ripple effects throughout the supply chain.
While the grow yard model mirrors that of the typical stocker or backgrounder operation, Close says grow yards will focus more on the 600 to 700 weight calves whereas stockers typically prefer 400 to 500 weight cattle. However, Close says this will create more demand and increased competition in the stocker market.
“It certainly provides more competition not only on price or number of buyers but it also enables the cow/calf guy some versatility in that he doesn’t have to sell his calf crop the same day as every one of his neighbors are,” he said. “So, we see some benefits there.”
In addition, as more cattle are diverted off the farm and out of the feedlot via grow yards, Close says this also creates more room for herd expansion as well. It also gives the high labor, low cost operators an opportunity to break into the business. And, given that operators in this segment generally do more regional business, Close contends that growth in this sector may also help advance the beef industry’s traceability agenda, too.
Listen to the full conversation between Close and Hays over this emerging sector in the cattle industry, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Don Close on the Impact of More Dairy Calves for Beef Consumption Fri, 21 Feb 2020 09:22:40 CST
Colin Woodall on The Battle Over the Beef Check-off Thu, 20 Feb 2020 09:14:06 CST
Colin Woodall on Defending the Beef Brand Wed, 19 Feb 2020 09:02:09 CST
Colin Woodall Explains Why Trade Victories are a Big Deal for The Cattle Industry Tue, 18 Feb 2020 10:09:44 CST
Danny Jones of Superior Livestock Talks about Feb 20th Sale in Norman, OK Mon, 17 Feb 2020 14:37:09 CST
Scott Yager Says its Important to Showcase Cattle's Role in Preserving the Environment Fri, 14 Feb 2020 11:55:40 CST
NCBA's, Scott Yager Explains The Difference Between The EPA's Old WOTUS and New WOTUS Thu, 13 Feb 2020 17:41:50 CST
Ben Weinheimer With TCFA Talks Traceability Throughout The Industry From Calf To Slaughter Wed, 12 Feb 2020 11:57:36 CST
New NCBA President Marty Smith Lists His Priorities For 2020 Tue, 11 Feb 2020 11:56:06 CST
Don Close with Rabo Agrifinance Talks Currrent Cattle Inventory Numbers Mon, 10 Feb 2020 14:34:34 CST
Kevin Good Predicts Continued Strong Demand, Higher Prices In 2020 Fri, 07 Feb 2020 11:28:22 CST
Ethan Lane Says There’s a Lot to Celebrate in Beef This Year Wed, 05 Feb 2020 10:56:02 CST
Katelyn McCullock says 2020 is the Year for Boosting Live Cattle Prices Tue, 04 Feb 2020 09:22:26 CST
Dr. Derrell Peel Sees No Big Surprises from Friday’s USDA Cattle Inventory Report Mon, 03 Feb 2020 06:33:25 CST
State Vet Dr. Rod Hall Believes the Animal Disease Trace-Back Program May Resurface in Early 2020 Fri, 31 Jan 2020 14:04:41 CST
Montana Judge Rules in Favor of USDA and State Beef Councils in Litigation Brought by R-Calf Thu, 30 Jan 2020 06:32:01 CST
Dr. Glynn Tonsor Not Expecting any Surprises with Friday's Cattle Inventory Report Wed, 29 Jan 2020 10:11:51 CST
Cattle Market Watcher Derrel Peel Previews This Friday's Cattle Inventory Report Tue, 28 Jan 2020 06:42:32 CST
Dr. Derrell Peel Talks Cattle on Feed and Marketing Placement Numbers Mon, 27 Jan 2020 15:01:57 CST
Scott Yager of NCBA- Navigable Waters Protection Rule Is a Huge Positive for Rural America Fri, 24 Jan 2020 06:55:16 CST
Alisa Harrison says When Consumers Have Options, They Still Choose Beef Thu, 23 Jan 2020 08:35:50 CST
Alisa Harrison Reminds Producers Their Beef is Still the Preferred Choice to be Found in the Meat Aisle Wed, 22 Jan 2020 06:48:34 CST
Even With Growing Meat Supplies- Demand Has Stayed Strong as a New Decade Arrives Tue, 21 Jan 2020 06:07:28 CST
Masters Of Beef Advocacy Program Helps Beef Producers be AgAdvocates for Their Industry Mon, 20 Jan 2020 10:35:34 CST
Cattle Industry Will Provide Watchful Eye as US and Chinese Trade Officials Work to End Non Scientific Trade Barriers for US Beef Fri, 17 Jan 2020 12:23:42 CST
NCBA’s Kent Bacus Hopeful China May Soon Be a Billion Dollar Beef Market for US Producers Thu, 16 Jan 2020 20:49:14 CST
OSU’s Dr. Derrell Peel Says Preconditioning and Risk Management Are Tools to Help You Prosper in 2020 Wed, 15 Jan 2020 06:48:10 CST
Dr. Derrell Peel Sees Cattle Marketplace in 2020 Starting on a Positive Note Tue, 14 Jan 2020 08:26:13 CST
When They Meet the Criteria of the Certified Angus Beef Program, Those Calves Are Worth More Mon, 13 Jan 2020 05:35:18 CST
LMIC's Katelyn McCullock Previews the 2020 Cattle Inventory Report and Expected Beef Cow Numbers Sat, 11 Jan 2020 10:43:26 CST
Oklahoma Cattlemen’s Association is Ready to Roll up their Sleeves and Review Policy at their One Day Winter Policy Conference Thu, 09 Jan 2020 07:10:54 CST
New Deal, New Opportunities for U.S. Beef in the European Market Wed, 08 Jan 2020 06:33:06 CST
If Trade Rules for US Beef Are Relaxed in US-China Phase One Deal- Erin Borror Sees Mind-Boggling Trade Ahead Tue, 07 Jan 2020 07:34:48 CST
USMEF's Erin Borror says Just Implemented US-Japanese Trade Deal Puts US Cattle Producers Back in the Game in Japan Mon, 06 Jan 2020 10:20:59 CST
McDonalds Proud to be a Part of Continuous Improvement in Sustainability in the Beef Value Chain Fri, 03 Jan 2020 12:28:31 CST