2002 News Archive
Group Works to Regain Market Leverage
10/18/2002
Members of a Four-State Working Group decided to pursue the concept of collective marketing for the fed cattle sector following a September meeting in Garden City, Kan. The 21-member group discussed ways to regain leverage in fed cattle marketing. The Kansas Livestock Association, Texas Cattle Feeders Association, Kansas Cattlemen’s Association, Nebraska Cattlemen and Colorado Livestock Association were represented.
The Working Group based its deductions on the premise that government intervention is not the preferred solution. Members favor a voluntary, industry-driven approach to solving the challenges faced by cattle feeders. Four-State members want to work closely with the NCBA Price Discovery Think Tank to identify a new pricing benchmark that relieves pressure on the cash market and moves away from using sales of cattle valued on averages.
Working Group members believe companies and organizations marketing cattle through consumer-focused, branded beef programs are taking the industry in the right direction.
The Working Group was created to address challenges and arrive at solutions that improve fed cattle marketing. Members feel leverage has been lost in the fed cattle sector due to a lack of seller discipline, increased captive supplies, structural changes in the industry and basic supply and demand fundamentals. Top-of-the-week trades were singled out as being especially detrimental to the market.