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Agricultural News

Beef Industry Changing- Cow Calf and Stocker Operators Will Be Paid More for Forage Gains- So Says Derrell Peel of OSU

Sun, 30 Jan 2011 15:25:08 CST

Beef Industry Changing- Cow Calf and Stocker Operators Will Be Paid More for Forage Gains- So Says Derrell Peel of OSU

A long term structural change is now underway for the Beef Cattle business as pounds of gain put on our cattle from forage are worth more than ever. Oklahoma State University Extension Livestock Marketing Specialist says the market is telling us that pounds of gain produced with forage are worth more- and that that can beneficial for both the Cow Calf producer as well as the Stocker Cattle Operator.

Dr. Peel says this is fundamental change because for "two generations, our beef cattle business was a grain intensive user." That was because we had relatively cheap grain available to feed in order to put on most of our pounds of gain. Now, Peel says the world has changed, with feed grain acres being bid away for other uses of that land.

It's very likely that we will keep feeding cattle grain- but it will be for a relatively few days in the feedlots, versus previous years when we would bring in lighter cattle and feed them longer to get them market ready. Now, it will more likely that we will get our calves and yearlings to heavier weights on forage, before feeding them a feed grain ration in the latter part of the feedlot cycle.

We conclude our multi-part conversation (part four of four) with Dr. Derrell Peel of OSU on today's Beef Buzz.

Here are the links to the earlier parts of this interview that we did with Dr. Peel:

Click here for part one with Dr. Peel- The Key Limiting Factor for How High Cattle Prices Can Go in 2011- Beef Demand

Click here for part two- Strong Boxed Beef Price Levels Making High Cattle Prices Back Down the Chain Work

Click here for part three with Derrell Peel- Do You Hold Back Your Heifers and Rebuild- Or Do You Take the Money and Run?

The Beef Buzz is a regular feature heard on radio stations around the state on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the listen bar below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.


Ron Hays Beef Buzzes with Derrell Peel of Oklahoma State University
right-click to download mp3


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