What are your hopes for 2020 for the cattle industry? I think that is a big question we all need to look at.
Do we go with the flow and see where it takes us? Or do we see what we can do to make it better? Most every one of us feels like a little fish in a big sea and that even seems to be the case for some that I consider big cattlemen. As far as a new packinghouse or even three small ones scattered across the country, I still think this is our only chance for survival. And for that to work I think you have to have three or four large grocery chains to be partners but only at a small percentage so that they don’t control the whole packing house.
I said to a friend of mine about most getting a dollar a hundred more for committing their cattle. He said, “I’m not getting a dollar a hundred more. I am getting $50 to $70 per head more by gridding mine. But still then instead of the packer making $450 per head he only makes $390.”
My thought on that is how long does that last? And the answer to that is until they do not need to do it that way to keep complete control. Every time you turn around the packer has accumulated a bigger percentage. Last month the nation’s fourth largest beef packer announced plans to take over Sysco, which owned Iowa Premium, a regional packer focused on processing black Angus steers for the upper Midwest. National Beef is owned by Brazilian firm Marfrig. That may seem insignificant but this increases Brazil’s dominance in the American cattle market.
In Texas, Oklahoma and New Mexico, 91% of fat cattle are sold formula or contracts. While we near this acquisition in Iowa and Minnesota over half of the fat cattle were sold in cash basis. Most feedlots there are 1,000 head or less but this acquisition may make less cash trade.
We desperately need someone to rally the cattlemen to give us a fighting chance and it has to be done now.
At breakfast this morning several ranchers were talking about roping. One man about 70 years old said, “My dad never would let me rope.” He said, “If they are that sick we will just drive them to the corral.”
“So one day dad was gone so I went to the pasture to rope. The first two tries my horse took off like lightning but by the third try he went about half speed.”
We said, “The horse wasn’t an idiot. The horse probably thought if he can’t catch one what is the purpose of me running that hard to get there?”
My friend took his wife to a restaurant and for some reason the waiter took his order first. He said, “I’ll have the rump steak and rare please.” The waiter said, “Aren’t you worried about the mad cow?” He said, “Nah, she can order for herself.”
Editor’s note: Jerry Nine, Woodward, Oklahoma, is a lifetime cattleman who grew up on his family’s ranch near Slapout, Oklahoma.
