Beef Buzz News
Market Analyst Corbitt Wall Makes The Case For Cattle Producers and Beef Packers Are Not in The Same Business
Fri, 13 Nov 2020 08:56:57 CST
Cattle producers and meat packers are not in the same business and that has never been more obvious than during the pandemic, said market analyst Corbit Wall.
Ron Hays Beef Buzzes With Corbitt Wall
Radio Oklahoma Ag Network Farm Director Ron Hays recently visited with Wall about the issue.
It's been devastating and probably shown us how vulnerable cattle producers are and how narrow the outlet is for our product, he said.
Our end product is cattle and the packers are in the beef selling business, Wall said.
For many years we tried to think we were in the same business but the recent "Black Swan" events of the plant fire in Kansas and the pandemic have shown we need to take care of ourselves, Wall said.
We saw during the worst of the COVID-19 when packers are making about $3,000 per head and the cattle producer is losing about $300 per head, there is no sharing of that profit margin, Wall said.
We don't see the cotton industry advertising for Fruit of the Loom, Wall said.
We need to have smaller regional packers for people who want locally produced beef and are willing to pay for it, he said.
The market is just now starting to recover from the pandemic-caused backlog in April and May.
Carcass weights are at record highs and it was just from being backed up, Wall said.
Cattle sellers are starting to get a little more leverage now with the packers, he noted.
Our exports are outstanding and if we didn't have the export business, we really would have had a wreck, Wall said.
The popular market analyst advised cattle producers to diversify by changing the timing of calving season.
We need to have more fall calves, he said.
When everybody is doing the same thing at the same time it doesn't make sense as people eat beef year around, Wall said.
Auction markets are full right now and not everybody needs to have a 600-pound calf to sell in the fall, he said.
Click on the LISTEN BAR below to hear more of Ron's interview with Corbitt Wall.
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.
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