Perseverance Brings Growth, Success for Magnum Feedyard

(Image courtesy of Steve Gabel)

Talk with Steve Gabel, owner of Magnum Feedyard, a 35,000-head capacity yard in Wiggins, Colo., and he’ll humbly tell you he’s kept his head down and worked persistently to support his business. But his forward thinking, adoption of technology and collaboration throughout the industry has led to success and a new honor: induction into the Cattle Feeders Hall of Fame this August in conjunction with the NCBA Convention and Trade Show. 

“I am very humbled to be included,” he says. “Not only am I extremely honored, but I’m extremely humbled.”

A native of Colorado, Gabel graduated from Colorado State University with a degree in animal science, and then landed at CattleFax, where he learned about cattle marketing and was able to build a network of connections. That taste of marketing had him hooked. 

“Initially my responsibilities were in the cow-calf area, and when I ended my tenure at CattleFax I was providing service to feedyards,” Gabel says. “I loved the pace and the action. At that point in time almost every feedyard still employed someone who was responsible for selling fed cattle. In each location I had somebody to talk to about the fed cattle market, and I was totally enamored by it.”

 After a stint handling risk management and sale of fed cattle with a management investment company that structured and managed tax-motivated cattle feeding programs and had cattle on feed in 23 states and seven feedyards, Gabel worked for two different feeding companies in the front range of Colorado. During that time, he figured out how he wanted to structure a purchase, found a partner, and on July 1, 1993, Magnum Feedyard began doing business. 

For the first two years, capacity was 3,000 head, and the facility needed a complete cleanup and overhaul. But by year five, with Gabel’s persistence, the company was able to complete its first expansion. 

“I really didn’t get serious about growing at that point in time,” he says. “I wanted our growth to be methodical and more calculated. From 1999 to 2019 is when we had our biggest growth. Today we can hold about 35,000 head.” 

“Initially, we were purely a commercial cattle feeding company, so somebody else owned them, and we provided the feed and care and marketing,” Gabel says. “As we were able to accumulate some equity, the company started to own more, and we’ve grown to a point today that we own between 80% and 85% of what we feed.” 

The company’s entire focus had been on gaining efficiencies and figuring out what can be utilized to be more efficient, he says. 

“It’s important to note all of the science-based technologies that have become available during the 40 years that I’ve been in this industry,” Gabel says. “We embraced the use of implants, ionophores and beta-agonists. All of those are technologies that science developed to allow us to be more efficient. That improved efficiency has provided us the ability to grow.” 

In addition, Magnum has used RFID tags for branded program cattle management and to tag specific cattle for carcass data collection because it makes the transfer of information much easier. They also completed alpha and beta testing on the Whisper stethoscope (Merck) for detecting lung conditions. The feedyard has also been licensed with Progressive Beef for seven years and completed the auditing process and data collection as a part of the commitment to cutting edge management of the facility. 

As he looks to the future, Gabel hopes for longevity and expansion, both through the facility, but in also in partnership with his children.The company has acquired additional farm and pastureland as a buffer around the current facility, which in addition to producing crops for the livestock in the yard, secures additional water rights in their area to help lay the groundwork for expansion. 

“I think we’ve got some real challenges that have to get ironed out with respect to marketing in our industry,” he says. “I’m hopeful that we can work with supply chain partners as we move forward to identify things in that supply chain that will work for them and work for us. And through that it would be our intention to continue the methodical growth pattern that we’ve had. Now, with our two adult children wanting to get involved in the business — one very much involved already, and the other wanting to get more involved — it becomes my responsibility to help them through the process of growth and expansion, so we get to a point that as a unit we’re more viable. Obviously with 35,000 head we’re more viable than we were at 3,000, but I think there are additional efficiencies that we can gain if we grow to 60,000- or 65,000-head capacity.”

Another primary goal for the future is to focus on the genetics of the family’s commercial cow-calf herd, which operates on three ranches in Wyoming and Colorado. 

“Our intention is to focus more on the issues of quality in our herd to sell a higher percentage of the bulls as intact males rather than steer them and put them on feed,” Gabel says. “But at the end of the day, there aren’t any shortcuts, so we’ve got to keep our head down and continue to do what we’ve done every day. And through that process look for opportunities from a timing standpoint, where it makes logical sense to expand.”

And above all, his advice for future generations can be summed up in one word: persistence.

“My biggest piece of advice is to be persistent,” he says. “A lot of people think there are too many financial limitations to entry in this industry. I would argue there’s not. I would argue that if I were able to acquire an ownership interest in a 3,000 head feedyard, and 30 years later grow into 35,000, anybody that’s willing to be persistent and work hard and work smart can make it happen.” 

“The main thing is to develop a network and utilize that network. I feed cattle today for people that I met 40 years ago when I started working CattleFax,” he continues. “Networks are important, but at the end of the day I think the most important thing is persistence. If I continue to focus every day on a specific goal, I will conquer that goal with time.”

Cattle Feeders Hall of Fame 

The Cattle Feeders Hall of Fame was launched in 2009 to celebrate the rich traditions of the cattle-feeding industry and recognize individuals who have devoted their careers to producing safe, quality beef and improving production practices. Merck Animal Health, Osborn and Barr, and Drovers are the founding partners. A reception in August will formally announce the 2021 inductees: Steve Gabel and Johnny Trotter.

 

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