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 Cattlemenís 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, thatís 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 havenít seen a whole lot of appreciation in price, he noted.
The age-old question of how we get more of that dollar in the producersí 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.
Weíre 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 todayís 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
Tyler Norvell Explains Changes for The 2022 Cattlemen's Congress Tue, 11 May 2021 09:16:11 CDT
Dr. Frank Mitloehner, UC-Davis, Says Science Tells us With Stable Cow Herds, we Are Not Adding to Climate Warming Mon, 10 May 2021 07:59:08 CDT
OSU's Dr. Derrell Peel Encourages Producers to Make a Drought Plan Now to Get You Through to Next Year Fri, 07 May 2021 08:25:52 CDT
U.S. Beef Exports Set Records in March, Much of it Going to S. Korea and Other Far East Countries Thu, 06 May 2021 08:15:42 CDT
NCBA's Colin Woodall Says They Are Working Hard To Tell The Truth About The Cattle Industry Today Wed, 05 May 2021 08:26:19 CDT
NCBA's Colin Woodall Says Increasing Plant Capacity And Explaining The Benefits of Cattle And The Environment Will Help Increase Beef Prices Tue, 04 May 2021 08:32:11 CDT
Colin Woodall, NCBA, Says Producers Are on The Wrong Side of Market Leverage Right Now Mon, 03 May 2021 08:00:01 CDT
OCA's Michael Kelsey Praises Legislation Establishing Cattle Theft Registry But he Says There Are Still More Legislative Issues to be Resolved Fri, 30 Apr 2021 08:40:27 CDT
Regenerative Ranching Program at Noble Research Institute Focused on Five Research Areas Thu, 29 Apr 2021 08:22:54 CDT
Hugh Aljoe, Noble Research Institute, Explains Why Rengenerative Ranching is Important Wed, 28 Apr 2021 08:22:11 CDT
Drought, High Feed Costs Tempering Optimism For a Better Cattle Market, Says OSU's Derrell Peel Tue, 27 Apr 2021 07:57:38 CDT
Latest Cattle on Feed Report Considered Bullish Says OSU's Dr. Derrell Peel Mon, 26 Apr 2021 08:10:09 CDT
Cargill, Sysco Food Companies Donate $5 Million For Southern Plains Grassland Program Fri, 23 Apr 2021 08:09:20 CDT
New Company Touts Affordable And Efficient Livestock RFID Ear Tagging System Thu, 22 Apr 2021 08:06:58 CDT
New Livestock Electronic Tracking System Simplifies Record Keeping Wed, 21 Apr 2021 08:24:01 CDT
Oklahoma National Stockyards Continues to Play a Significant Role For The Cattle Industry Tue, 20 Apr 2021 08:12:05 CDT
Oklahoma National Stockyards Having a Good Year Says President Kelli Payne Mon, 19 Apr 2021 08:08:20 CDT
Momma Cows Could Still be Showing Effects of February's Brutal Cold Says OSU's Mark Johnson Fri, 16 Apr 2021 08:03:44 CDT
February's Brutal Cold Could Impact Breeding Bulls This Spring Says OSU's Mark Johnson Thu, 15 Apr 2021 08:06:56 CDT
U.S. Meat Export Federation CEO Expects Good Year For Exports Wed, 14 Apr 2021 08:22:00 CDT
U.S. Meat Exports Down in Latest Report But Dan Halstrom, U.S. Meat Export Federation, Says That Was Expected Tue, 13 Apr 2021 07:43:40 CDT
Rancher Lamar Steiger Says Wal Mart Focused on Providing High Quality Fresh Beef Mon, 12 Apr 2021 08:15:13 CDT
Wal Mart Heads The List of Grocery Stores Focusing on Providing Quality Beef For Consumers Fri, 09 Apr 2021 08:34:04 CDT
Arkansas Beef Producer Explains How Wal Mart Improved Its Meat Counter Reputation Thu, 08 Apr 2021 08:18:03 CDT
Producers Should Have a Plan Ready if Drought Becomes Reality This Summer, Says OSU's Derrell Peel Wed, 07 Apr 2021 08:14:52 CDT
Strong Demand Fueling Higher Beef Cattle Prices Says OSU's Derrell Peel Tue, 06 Apr 2021 08:01:26 CDT
Flies Are a Huge Economic Threat For Pasture Cattle Says Mark Upton, Central Life Sciences Mon, 05 Apr 2021 07:58:15 CDT
Beef Cattle Producers to Receive CFAP Funds Soon, Says NCBA's Ethan Lane Fri, 02 Apr 2021 08:09:12 CDT
NCBA's Voluntary Price Discovery Policy Approaches First Milestone Says Ethan Lane in The D.C. Office Thu, 01 Apr 2021 07:58:15 CDT
Senate Legislation Establishing Percentage of Cash Versus Negotiated Cattle Trade Examined by NCBA's Ethan Lane Wed, 31 Mar 2021 08:20:52 CDT
Cloud of Uncertainty Hangs Over Meat Demand Going Into Spring Months Tue, 30 Mar 2021 10:56:10 CDT
KSU's Dr. Glynn Tonsor Develops Tool to Determine Value of Calf Vaccination Programs Mon, 29 Mar 2021 07:50:16 CDT
KSU's Dr. Glynn Tonsor Uses Meat Demand Index to Measure Improving Economy Fri, 26 Mar 2021 08:03:06 CDT
Cattle Producers to Finally Receive Payments From First Round of CFAP Thu, 25 Mar 2021 08:04:47 CDT
Research Shows Grazing Cattle Provide Many Benefits For Both Humans And The Environment Wed, 24 Mar 2021 08:22:03 CDT