Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   
   
   
   

Agricultural News


Veteran Cattle Feeder Lee Borck Says Grid Marketing Cattle is Like Supplying Premium Automobiles

Wed, 20 Jun 2018 12:09:47 CDT

Veteran Cattle Feeder Lee Borck Says Grid Marketing Cattle is Like Supplying Premium Automobiles In the mid-1990s when Kansas cattle feeder Lee Borck saw the first value-based grid markets, he realized it was like a past generation of new car buyers and sellers. He talked about that recently.

“They didn't have a lot with 200 cars on it you could pick from. They had two of them sitting in the front window and you'd go in, you'd write the order down,” said Borck, the Manhattan, Kansas-based chairman of Integrated Livestock Systems and the Beef Marketing Group Cooperative. “And you had the price for the bare car. But then if you wanted air conditioning, or if you wanted floor mats, or if you wanted electric windows. This much for the air conditioning, this much for the floor mats, and this much for the windows. That's the way we approach selling cattle. Cash is a base index, that's average. That's your Plain Jane auto.”

To watch a brief video clip featuring Lee Borck, Manhattan, Kansas-based chairman of Integrated Livestock Systems and the Beef Marketing Group Cooperative, compare grid marketing cattle to supplying premium automobiles, with extra variables like weather thrown in, click or tap the PLAYBOX in the window below.



If packers wanted better-than-average grade cattle, they needed to pay a premium. This much for more marbling, this much for leaner carcasses. With DISCOUNTS if the cattle got too fat.

“And we got to be just like the automobile companies were,” Borck said. “We produced more of what the packer wanted and less of what he didn't. And so, we were able to get premiums out of it. It's really pretty simple economics.”

While that might sound like producing premium beef became very routine, it has never been cut and dried, or as simple as those driving economics.

“It wasn't that we were extremely good to begin with in doing that. It took years for us to really figure out how to be efficient at what we were doing,” he concluded. “There were mistakes and you'd think you had it figured out. And you hit a weather event that would... You didn't know whether it was right or not then because it would blow up the information that we were gathering. So, you'd almost have to say it was a lifetime's worth of work to be able to get to where you're fairly comfortable. But even today, it's not an exact science.”

Borck and his network of allied feedyards continue to innovate and respond with ever greater precision to the consumer demand for premium beef.

Source - Certified Angus Beef



   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Bill Buckner Announces End of the Year Retirement from Noble Research Institute  Tue, 18 Sep 2018 17:17:30 CDT
  • Bill Buckner Announces Retirement from Noble Research Institute- Effective the End of 2018  Tue, 18 Sep 2018 17:05:35 CDT
  • Steer and Heifer Calves Sell 3.00 - 6.00 Higher Tuesday at OKC West Livestock Auction in El Reno  Tue, 18 Sep 2018 16:09:38 CDT
  • Okarche Dairy Producer Angie Meyer Offers Some Perspective on Ice Cream's Unassuming Origins  Tue, 18 Sep 2018 15:16:49 CDT
  • USDA Announces $102.7 Million Investment to Expand Markets for Specialty Crop and Other Farmers  Tue, 18 Sep 2018 15:05:58 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Tuesday, September 18, 2018  Tue, 18 Sep 2018 14:49:56 CDT
  • Tuesday Market Wrap-Up with Justin Lewis  Tue, 18 Sep 2018 14:02:04 CDT
  • Tuesday Afternoon Market Wrap-Up with Carson Horn  Tue, 18 Sep 2018 13:55:45 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show Stillwater Milling KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com

    Find more about Weather in Oklahoma City, OK

       
       
    © 2008-2018 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.