Beef Buzz News
Colin Woodall, NCBA, Says Producers Are on The Wrong Side of Market Leverage Right Now
Mon, 03 May 2021 07:59:58 CDT
Cattle producers are caught in a balancing act with the packers, as each side works on leveraging supply and demand, said Colin Woodall, CEO of the National Cattlemen’s Beef Association.
Ron Hays Beef Buzzes With Colin Woodall
Woodall recently talked with Radio Oklahoma Ag Network Farm Director Ron Hays.
It boils down to cattle markets, that’s on the minds of everybody, Woodall said.
We continue to see high demand and high cutout values and hear about the packer margins, he said.
On the producer side, we haven’t seen a whole lot of appreciation in price, he noted.
The age-old question of how we get more of that dollar in the producers’ pockets is top of mind, he said.
The NCBA CEO said they are closely watching the numbers, keeping in mind what cattle producers have said about triggering price transparency thresholds that can swing market leverage to one side or the other.
Leverage is simply supply and demand and if you have the supply and someone wants what you have then you have the leverage, he said.
There are a lot of cattle out there and the packers know that, so they have the leverage, he said.
We’re not giving up hope that we can take back that leverage but right now it is firmly in the packer camp, Woodall said.
Part of the problem lie with reduced packer capacity following the 2013-14 drought that reduced cow herds.
Packers made the business decision to shut down plants.
It is clear when you look at the charts and the data that is exactly where that leverage shifted, Woodall said.
We got down to some of the lowest herd numbers in 50 years and there was not the supply to keep the lights on in the plants, Woodall said.
Typically, when a plant goes dark it is rare those light get turned back on and that is what we are seeing now, Woodall said.
Even though the supply is back up those plants have not returned and that is why the packers have leverage, he added.
Click on the LISTEN BAR below to hear the complete interview with Colin Woodall as he talks with Ron Hays.
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
John Stika Believes the Pandemic Shows Consumers Want High Quality Beef Thu, 16 Sep 2021 08:07:17 CDT
Dr. Jody Wade's Advice to Cattle Producers is Stay Ahead of BRD Wed, 15 Sep 2021 13:14:02 CDT
Katelyn McCullock Sees High Hay Prices in the U.S. Tue, 14 Sep 2021 10:49:50 CDT
NCBA's Ethan Lane Believes mCOOL is Old News Mon, 13 Sep 2021 11:15:37 CDT
NCBA's Ethan Lane Heard Little New in White House Briefing on Competition Fri, 10 Sep 2021 11:45:17 CDT
Dan Halstrom Predicts 2021 Will Be a Record Year for U.S. Beef Exports Thu, 09 Sep 2021 11:15:04 CDT
Dietician Shalene McNeill Says Consumers Enthusiastic About Including Beef in Their Diet Wed, 08 Sep 2021 09:25:33 CDT
Shalene McNeill on Why You Should Feed Your Baby Beef Tue, 07 Sep 2021 12:20:07 CDT
Randy Blach Says Sustainability is an Opportunity for Beef Cattle Industry Mon, 06 Sep 2021 05:00:35 CDT
Although Beef Demand is High, Dollars are Slow to Trickle Down to Producers Fri, 03 Sep 2021 12:25:25 CDT
Dr. Harold Newcomb Says Strategic Deworming Helps Your Bottom Line Thu, 02 Sep 2021 09:33:31 CDT
Carbon Markets: The Wild West of Free-Market Enterprise Wed, 01 Sep 2021 10:38:53 CDT
Biden Administration Intent on Dumping Trump Era Navigable Waters Protection Rule Tue, 31 Aug 2021 16:57:44 CDT
NCBA's Scott Yager Says Redefining WOTUS Will Be Repetitive Mon, 30 Aug 2021 11:18:40 CDT
Mark Your Calendars for the Second Annual Cattlemen's Congress Fri, 27 Aug 2021 11:46:50 CDT
More From NCBA's Kent Bacus on Why Beef Exports to China, Japan and Korea Work Thu, 26 Aug 2021 11:36:51 CDT
U.S. Beef is Bustling in the Pacific Rim Says NCBA's Kent Bacus Wed, 25 Aug 2021 08:32:01 CDT
Bruce Hoffman Talks Treating Bovine Respiratory Disease Tue, 24 Aug 2021 09:29:20 CDT
OSU's Derrell Peel Says August Cattle on Feed Report Shows Tighter Cattle Supplies Ahead Mon, 23 Aug 2021 13:24:14 CDT
Randy Blach Believes Better Quality Cattle Brings Great Eating Experience to Consumers Fri, 20 Aug 2021 09:17:27 CDT
Dan Halstrom: There are Concerns Despite High Exports of Beef and Pork Thu, 19 Aug 2021 10:42:01 CDT
U.S. Beef. It's What's for Dinner, Globally Wed, 18 Aug 2021 10:23:41 CDT
NCBA Continues Work With Members and Congress in Improving Market Transparency and Cash Cattle Trade Tue, 17 Aug 2021 10:29:42 CDT
Ethan Lane Says All Eyes are on Transfer Taxes Mon, 16 Aug 2021 09:34:18 CDT
Scott Yager on What New Methane Measurements Mean for the Cattle Industry Fri, 13 Aug 2021 10:05:46 CDT
CattleFax VP Kevin Good Says Cattle Market Leverage is Moving Toward Producers Thu, 12 Aug 2021 09:20:34 CDT
NCBA's Danielle Beck on How the Biden Administration Plans on Funding Their Goals for the U.S. Wed, 11 Aug 2021 09:53:56 CDT
NCBA President Jerry Bohn Talks How the Biden Administration Could Impact Beef Producers Tue, 10 Aug 2021 11:36:01 CDT
Oklahoma National Stockyards President Kelli Payne Talks Resiliency Amid the Coronavirus Pandemic Mon, 09 Aug 2021 21:39:00 CDT
Oklahoma National Stockyards President Kelli Payne Talks Resiliency Amid the Coronavirus Pandemic Mon, 09 Aug 2021 10:36:15 CDT
Cattle Selling This Month at The Big Event at Express Ranches are the Best of the Best Fri, 06 Aug 2021 13:53:58 CDT
American National Cattle Women: The Cattle Industry’s Boots on the Ground Thu, 05 Aug 2021 17:14:35 CDT
Clay Burtrum Talks Beef Checkoff Efforts Ahead of the 2021 Cattle Industry Convention Wed, 04 Aug 2021 20:06:59 CDT
Dr. Tryon Wickersham Urges Cattle Producers to Tell the Positive Story of Beef to Consumers Tue, 03 Aug 2021 13:04:50 CDT
TCFA's Ross Wilson Worries About Overreach as USDA Rewrites the GIPSA Rule Mon, 02 Aug 2021 14:14:25 CDT