Cattle Industry Groups Hold Closed-Door Meeting to Discuss Price Imbalances

The current price imbalance between the packer, the feedlot and the ranch, was at the heart of a closed-door meeting among cattle industry representatives this week. AgDay has learned six groups, including NCBA, R-CALF, U.S. Cattlemen's Association, American Farm Bureau, National Farmers Union and Livestock Marketing Association met in Phoenix.

The groups, typically at odds, telling AgDay they were on the same page and in agreement about possible changes and solutions.

One representative saying a tangible solution will come out of the meeting including a possible announcement next week.

This meeting comes as the latest Sterling Beef Profit Tracker showed packer margins hit $929 per head. Which is an increase of more than $260 per head in the past week.

Beef packer capacity is currently estimated at less than 90%, AgDay reports. Meanwhile, cattle prices held steady at $119 per hundred, and average feedyard margins were positive at $87—even as finishing costs go up.

Oklahoma State Livestock Specialist Derrell Peel says spiking feed costs—along with a backlog of cattle—aren't helping producer margins right now.

“One of the big ones at the moment is that we simply have a very large supply of fed cattle, and not enough packing capacity to process at all,” Peel says. “We've been aware for several years that packing capacity had gotten down to a point where it was kind of imbalanced with cattle numbers, and actually now is a little bit shorter what we need."

Peel says some packers are working Saturdays, and even with the Saturday kills, they can't keep up.

 

Latest News

Biden Administration Restores Wildlife Protections
Biden Administration Restores Wildlife Protections

The U.S. Fish and Wildlife Service plans to reinstate rules protecting endangered plants and animals, action that would reverse changes made during the Trump Administration that weakened the Endangered Species Act.

Across Breed EPD Adjustment Factors
Across Breed EPD Adjustment Factors

EPDs from multiple breeds can be compared by adding/subtracting the appropriate adjustment factors to the EPDs resulting from the most recent genetic evaluations for each of 18 breeds.

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims
USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims

Conservation Reserve Program (CRP) participants can donate emergency grazing authority to ranchers in Nebraska, Oklahoma and Texas impacted by recent wildfires.

New Guide Helps Producers Maximize Values of Cull Cows
New Guide Helps Producers Maximize Values of Cull Cows

A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps cattle producers maximize profitability from their culling decisions.