CattleFax CEO Says Beef Market Has Transformed From Supply Driven To Market DrivenFri, 13 Mar 2020 10:37:42 CDT
On today’s Beef Buzz, Radio Oklahoma Ag Network Farm Director Ron Hays talks with Randy Blach, CEO of CattleFax. Blach said the beef market has been transformed from a supply driven market 40 years ago to a demand driven market today.
Prior to the 1980’s the beef market was not differentiated, Blach said. It was basically just beef, no specific brand names, no organic or grass fed, etc. He noted this has been good for the market as it has opened many new marketing opportunities.
One concern is adequate price discovery.
“Price discovery is adequate today,” Blach said. “We do not need 100 percent of these cattle traded in a cash market. There is a great deal of differentiation taking place.”
He said on any given day there is a $4-500 per head difference in quality of the product on animals going through the packing plant.
“We’ve got a lot of data to use to bolster price discovery,” he said. “I think 20 percent of the cattle trading in the cash market is adequate. What we have to be worried about is it shrinking to 10 percent. That’s probably getting a little thin.”
Click on the LISTEN BAR below to hear the complete interview with Randy Blach as he talks with Ron Hays.
The Beef buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is 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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