Agricultural News
TCFA Chairman Scott Anderson of Guymon Optimistic About What's Ahead for Feedlots in Southern Plains
Wed, 04 Aug 2021 09:15:53 CDT
After a year of uncertainties that stem from the pandemic, so also have beef producers endured a year of uncertainty.
A native of Guymon, Oklahoma, Chairman of the Texas Cattle Feeders Association Scott Anderson, recaps this past year and the current cattle cycle.
Anderson has a privately-owned cattle feeding operation of about 40,000 head. He has been there since the last 1960s and has developed a customer base from all across the U.S., he said.
Every day is a new day in the industry and within his operation, Anderson said. The current state and progression of the world market coupled with new technology has helped mature the operation, he added.
Anderson said his feedlot, CRI Feeders, as well as the feedlots he represents as TCFA chairman, have all been greatly affected by these unprecedented times within the pandemic.
Cycles are inevitable within the market, so we have gone back and looked at four major cattle cycles since the mid-1970s that have brought ups and downs, Anderson said. It appears the summer of 2020 is the bottom of our current cycle, so we are starting to work out way of that now, he said.
Several stars aligned to make last year a perfect storm, Anderson said. The 2019 Holcomb fire and 2020 COVID-19 pandemic were two notable factors, he said.
"We are still not past it yet," Anderson said. "The upside is the market is starting to make its way upward."
Another positive to note is the filling supply chain and peak numbers for live cattle, Anderson said. There is hope for rebalanced margins and leverage to start shifting back in producers' favor, he said.
Anderson added he predicts we are anywhere from 60 to 90 days from getting to the other side of the leverage and supply hill. There is lots of optimism in the market as we march forward, Anderson said.
The core of production agriculture is about markets and production, Anderson said, and our industry is good at responding quickly to market signals.
When there is a need we work to respond collectively and allow the market to correct, he said.
Another important happening within the beef industry is the 75% Act that came about last summer. With two quarters now under the belt, feedlots within the TCFA area have worked to help with that voluntary efforts, Anderson said.
"We believe whole heartedly that a voluntary effort will be much more of a sustainable solution than anything that could be handed down from the government," Anderson said. "So far, we have been able to meet the obligations and understand the market dynamics."
Another factor into play is the utilization of AMAs, or alternative marketing agreements.
AMAs, Anderson said, are a great way to reward producers for efforts. They have done a great job at growing domestic and global demand for our product, he added.
Up next for the TCFA, the annual Fall meeting is set to be held in October at the Omni Hotel in Oklahoma City where Anderson will give his chairman's address.
"We are excited to have the opportunity to bring everyone back together," Anderson said.
Anderson we can expect several speakers and ample discussion about the beef industry's ability to produce quality products.
To hear Ron's complete conversation with Scott Anderson, click or tap below.
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