Fri, 02 Dec 2022 09:58:32 CST
Senior Farm and Ranch Broadcaster, Ron Hays, is visiting with the Vice President of Government Affairs at the National Cattlemen’s Beef Association, Ethan Lane, about today’s beef business climate.
“Producers don’t know where the next hit is going to come from, right, we see prices finally start to recover, we see them recover faster than we would expect because of that herd liquidation, and then you have input costs come in, and take that profit right back out of the transaction again,” Lane said. “It is disheartening, I think, for a lot of producers around the country that feel like they have done everything right, they have worked on their genetics, they have improved their herds, they are making more on their cattle, and they are still not making a profit.”
After enduring many hits over the last several years, Lane said he is hopeful that cattle producers can expect to see some packing plants in the future that are producer-focused.
“Some of those business models of those new packing plants that are much more producer focused, are really working more with producers to make sure more of that beef dollar gets back to the ranch gate,” Lane said.
While hook space in the country is not an issue, Lane said there needs to be more diversified options for producers to market into. NCBA and USDA, Lane said, have both been focusing on some of the smaller packing plants to give cattle producers more options.
“There are areas where you can have a lot of impact without a really big facility, so the next question is, how do you keep that facility competitive with a 5,000-head facility in the middle of the country that has every efficiency benefitting them, and that connection with local consumers, keying into some of those locally raised products, and making those connections with our end users is a big part of that,” Lane said.
Lane said that not every producer wants to get on Instagram and create their own brand and push that brand 24 hours a day. Some producers just want to raise cattle, sell them, and make money, he added.
“There needs to be opportunities for both, and we think some of these investments that are being made are creating a lot of different opportunities like that, and that is the goal,” Lane said.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Ag Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR for today’s show and check out our archives older Beef Buzz shows covering the gamut of the beef cattle industry today.
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