Texas Cattle Feeders Tackle Price Discovery ProblemFri, 16 Aug 2013 15:24:32 CDT
One of the growing problems in today's feedlot industry is price discovery. Fewer and fewer cattle are going on the cash market to be priced. Radio Oklahoma Network Farm Director Ron Hays spoke recently with Ross Wilson, the chief executive officer and president of the Texas Cattle Feeders Association, and asked him about how to solve this problem.
"This is an issue that has been cussed and discussed in this industry for years, if not decades. As we have continued to evolve in the way that we produce and market our cattle. There's an interesting situation here: we talk mainly about price discovery, but let's not forget that a lot of this is also about value discovery and those two are very closely related. And some will argue that until you take the hide off and you transact that trade, that exchange with the packer and the beef, do you really know what the true value is?"
He said the NCBA has commissioned a study to determine how low negotiated cash trade can go before you lose true price discovery and what might the alternatives be to live cash trade.
"No one is expecting a silver bullet to come from this, but we're hopeful. I'm optimistic there will be some information and some light shed on this that we will-at some point in the next year or two-be pursuing some different ideas in marketing."
You can listen to the full interview with Ross Wilson by clicking on the LISTEN BAR below.
The Beef Buzz is a regular feature heard on radio stations around the region 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
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