MARKETING...
In The Cattle Markets
Value of gain: projections and available decision tools.
This is the time of year many cattle producers examine the return for additional weight gain. Cow-calf producers interested in retaining ownership, as well as stocker and backgrounding operators who possess or may procure necessary resources for adding weight to calves, need value of gain projections to guide their decisions.
Perhaps the most common approach is to take prices for two different weight classes of cattle in the current cash marketplace, derive the increased total value implied by today's cash prices, and divide by the total weight gain. This approach may be referred to as a naïve approach. Read more.
Light at the End
Survive nine months of bad news, better days follow for feeders.
Don't expect corn values to get dramatically lower — this year.
Dan Basse
Feeding Quality Forum attendees were probably not surprised to hear Dan Basse, Ag Resource Co., say pricing inputs would be their top challenge in the last quarter of 2012. However, comments that those costs could normalize in the latter part of next year surely piqued their interest.
The market analyst addressed feeders, allied industry and educators at the seventh annual meetings in Grand Island, Neb., and Amarillo, Texas, in August.
"There aren't too many years in my career that I've talked about surety of supply," Basse said. "I want all of you to not only think of the cost of feed, but making sure that you have it." Read more.
Jim Robb Offers Economic Update
Economist Jim Robb, director of the Denver-based Livestock Marketing Information Center (LMIC), didn't pull any punches during a presentation at the Gudmundsen Sandhills Laboratory Open House in late August. Speaking to a crowd gathered at the University of Nebraska research ranch, Robb spoke plainly about the U.S. economic environment, beef demand, ethanol production and market price expectations.
"The economy is not growing," Robb stated. "The average consumer has less disposable income, in real money, than in 2008. On the bright side, consumer demand for beef is pretty good."
Robb called consumer demand for beef stable at present. He said reports claiming demand has declined amount to misinformation. Granted, per capita consumption has declined somewhat. However, the beef supply is down, prices continue to increase and consumers are buying up the supply. Read more.
CAB Mythbusters
What they thought they knew that
just ain't true.
From time to time, industry articles give Certified Angus Beef LLC (CAB) credit for driving up prices of black feeder cattle at the auction barn.
I don't disagree that CAB probably played a huge role in that. After all, the live-animal specification is the first hurdle that cattle have to meet to be accepted into our program (here's the entire list), but it usually surprises folks to learn that our goal isn't to increase numbers or prices of black-hided cattle in the United States.
Myth: CAB is just concerned with turning the nation's cow herd black. Read more.
July Pork Exports Trend Lower;
Beef Exports Largest of 2012
U.S. pork exports in July were slightly lower than a year ago, while beef exports dipped moderately in volume, achieving their largest monthly total of 2012 while holding steady in value. These results are based on statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
"With higher operating costs, both the pork and beef sectors are facing serious economic challenges," said USMEF President and CEO Philip Seng. "Tight beef supplies have pushed prices higher and strong demand from our international customers is helping support higher beef cutout values." Read more.
The Source
Put your name on it.
With school back in session, I think every teacher across the country will be repeating, "Put your name on it!" — a million times a day. Kids always find a way to leave a notebook here, a lunch box there. Without a nametag, those items go directly to the lost and found never to be found again.
That's not to mention all those homework assignments that go missing without a name. During college, I used to substitute teach at a local high school, and trying to figure out which person went with what paper was just about as much fun as searching the pasture for "that black cow with kind of long hair on her poll."
My dad is famous for those types of descriptions.
However, what Dad thinks a cow looks like and what I am thinking about can be a night-and-day difference. That's where ear tags come into play. I love tags that can be read at a distance and that actually stay in the cow's ear. When Dad says check on red tag 729, life is much easier. We both know exactly which cow and what pasture, because on our operation, each pasture has a different-colored ear tag. Read more.
What a Chef Wants
Premium beef drives profit.
In his line of business, customers come and go.
Some are traveling business class with expense accounts, perhaps apt to eat more and spend more. Others are vacationing families, watching their costs and looking for a relaxing time on a pinched budget.
Regardless of the customer, quality must remain consistent. In Sean Woods' world, it simply must. Read more.
Angus Calendar
To view the Angus Calendar, a complete list of Angus sales, click here.