Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Agricultural News

The US Beef Cattle Industry- All About Providing the Right Product in the Right Form at the Right Time in the Right Place to Satisfy the Consumer

Mon, 31 Dec 2018 14:29:52 CST

The US Beef Cattle Industry- All About Providing the Right Product in the Right Form at the Right Time in the Right Place to Satisfy the Consumer Mondays, Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry. This analysis is a part of the weekly series known as the "Cow Calf Corner" published electronically by Dr. Peel and Dr. Glenn Selk. Today, Dr. Peel considers how big a miracle today's US Cattle Industry really is.

As we wrap up 2018, itís worth a moment to pause and consider the amazing day to day performance and accomplishments of the U.S. cattle and beef industry. Beef production in 2018 is projected to total nearly 27 billion pounds of beef products resulting from the slaughter of 33 million head of cattle. The economic system that connects cattle production to beef consumption is remarkably complex and is a challenge for producers and consumers alike to understand and appreciate.

The marketing challenge for beef is no different than for any other product: providing the right product; in the right form; at the right time; in the right place; at a price that represents value to the consumer. Consumer demand for a given product, say a ribeye steak, is met by a marketing system that must simultaneously meet that demand and maximize the value of the large set of products resulting from fabricating the carcass in order to provide a ribeye steak. For consumers, beef demand for a given product on any given day occurs in diverse markets ranging from retail grocery; restaurants (HRI: hotel, restaurant and institutions); or in a variety of international export destinations and, of course, not all products are consumed in all markets. What we refer to simply as beef demand is really a vast array of demands for the multitude of products that result from the disassembly of beef carcasses. Moreover, beef products are perishable and mostly marketed fresh; which means that the ability to use product inventories to balance dynamic supply and demand flows is typically limited to a short period of a few days. Itís easy to take for granted that fresh beef will be available in a wide range of domestic and international markets every day of the year but the process is truly remarkable.

In order to meet that fresh beef demand, a continuous flow of cattle ready for slaughter must be available throughout the year. The flow of fed cattle into the packing industry is the result of multiple production sectors and a lengthy production process. The majority of cattle slaughter is young cattle finished in feedlots in a five to six month feeding phase. Prior to finishing, many cattle grow in a stocker or backgrounding phase that typically lasts from four to six months. Stocker cattle are calves typically weaned at seven to nine months of age as the product of cow-calf production. This means cattle are slaughtered at roughly 18 months of age, with adjustments in any or all of these production phases resulting in a range of slaughter age from 15 to 22 months or more. Add to that nine months of gestation to produce a calf and the total time between fresh beef for consumers and a rancherís decision to turn out the bull is more than two years.

Additionally, there are numerous other dimensions of cattle production that add to the complexity of the industry. Cattle production occurs all over the country in a wide range of climate conditions ranging from semi-tropical to subarctic. Cattle are ruminants and able to use a wide range of feed resources which add flexibility to cattle production but also add to the challenge of adjusting cattle production in response to the dynamic market conditions described above.

Cow-calf and stocker producers, feedlots, packers, further processors and a host of other workers in transportation, stocking, cooking, serving and countless other industry participants work every day to make sure that restaurant diners and grocery shoppers donít have to think about where and how that beef product came to be available at that momentÖor indeed that it would be there at all. It truly is a miracle.

Source- OSU Cow Calf Corner



WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Fourteen College Students Selected as Interns to Join Noble Researchers in Ardmore and Learn By Their Side  Tue, 18 Jun 2019 12:08:48 CDT
  • Oklahoma Cattlemen's Association 67th Annual Convention & Trade Show Returns to Norman - July 19 and 20  Tue, 18 Jun 2019 12:05:05 CDT
  • Prospect of Higher Feed Costs Generating Both Challenges and Opportunities for Cattle Producers  Tue, 18 Jun 2019 11:01:59 CDT
  • Tuesday Preopening Market Update with Dave Lanning  Tue, 18 Jun 2019 07:16:46 CDT
  • Feeder Steers Steady to $5.00 Lower and Feeder Heifers Steady to $3.00 Lower at Oklahoma National on Monday  Tue, 18 Jun 2019 06:04:44 CDT
  • Steer and Heifer Calves Steady to $3.00 Higher and Yearlings Steady at Joplin Regional on Monday  Tue, 18 Jun 2019 05:47:56 CDT
  • Wheat Harvest Arrives in Kansas With 16 Percent of Crop Cut in Oklahoma While Millions of Acres of Corn and Soybeans Remain Unplanted  Tue, 18 Jun 2019 05:27:36 CDT
  • Slaughter Cows 1.00-3.00 Higher, Slaughter Bulls Too Lightly Tested For an Adequate Market Test Monday at OKC West Livestock Auction  Mon, 17 Jun 2019 17:47:23 CDT

  • More Headlines...


    Ron salutes our daily email sponsors!

    Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show AFR Insurance Stillwater Milling KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com

    © 2008-2019 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.