Agricultural News
TCFA President Ross Wilson Offers His State of the Southern Plains Feedlot Business
Mon, 25 Jul 2016 16:59:11 CDT
It is a challenging time for the cattle market, there is no doubt. It is a problem though Ross Wilson, president of the Texas Cattle Feeders Association, says could have been forecasted to a degree, given the ongoing nationwide herd expansion. With this and so many other factors contributing to the market's volatility right now, Wilson offered a State of the Southern Plains Feedlot Business, so to speak, calling it a very interesting time for the industry.
One factor literally being felt by everyone right now, is the heat, and cattle are especially feeling it. Wilson says that fortunately for the cattle in the feedlots he represents, they enjoy a region that is a little higher in elevation, resulting in lower humidity. They are lucky too, because the plains tend to cool overnight, which he says is critical in helping cattle to cool down and better cope with heat stress.
Aside from this, industry leaders have been working in concert across the country to address the recent market volatility over the last six to eight months, according to Wilson. He explained that an industry group, with involvement of the National Cattlemen's Beef Association (NCBA) and other state affiliates, has been meeting with representatives of the Chicago Mercantile Exchange (CME) to advocate for analyzation of a potential flaw in a current system of trade that involves high frequency computer generated commands based off algorithms that are conducted at incredible speeds. The group strongly believes this causes computers to build momentum that flows the market in one direction or the other to the point the computers begin to just trade between each other. Wilson says CME has made strides to help the situation but also remarked that they have not yet looked into what the group believes is the main problem. However, Wilson remains hopeful that a solution will come to light soon, with the enlisted help of Eric Hunsader of the Nanex corporation who is already investigating this issue.
Lastly, Wilson examined the current trend of transparency and sustainability within the industry as it relates to consumer engagement. By the implementation of new technologies, practices and attitudes, Wilson believes there is a part that must be played by producers and industry leaders to cater to the demands of the consumer.
"The millennials and other generations are our future and we need to be able to address their desire for knowledge and some of the misinformation that is out there," Wilson said, "because we all know there are organizations and activist groups that continue to try to mislead the consumer and we need to be there to rebut that."
Listen to Ross Wilson's entire conversation with RON Farm Director Ron Hays as he offers his perspective on the state of the beef industry by clicking or tapping on the LISTEN BAR below.
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