News

Marketing issues concern Nebraska Cattlemen

Photo courtesy UNL-IANR

Photo courtesy UNL-IANR

The Nebraska Cattlemen’s organization is concerned with the continued downward trend in negotiated cash sales of fed cattle.

Jeff Stolle, vice president of marketing for Nebraska Cattlemen, says the growing use of non-cash mechanisms in the fed cattle trade, such as formula and contract transactions, has led to reduced competition and increased market volatility.

“I think it’s safe to say there are a lot of people in the industry—a good many people in the industry right now—that feel like we’ve kind of reached a tipping point, if you will,” Stolle says.

If current trends continue, Stolle says, it will eventually lead to liquidation in the nation’s beef cow herd and impact the infrastructure of the entire cattle industry.

“We’re looking at something that I think is serious enough that it could, in fact, lead to a continued downsizing of the industry at a number of levels. Because all levels are dependent upon the number of cows in the country. That’s where it all starts,” he says.

An interim policy adopted by the Nebraska Cattlemen’s board of directors encourages sellers of fed cattle to “be more active participants in creating a more vibrant cash-negotiated market”.

AUDIO: Jeff Stolle

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!