> I doubt that it will ever happen
> that "all" calves will
> go to feedlots. Like the poultry
> and swine industries, I anticipate
> that the beef cattle business will
> become much more consolidated.
> There will be fewer
> "players" in the
> business but they will be much
> larger in size.
> However, one thing that
> differentiates the cattle business
> from the swine and poultry
> businesses is that hogs and birds
> can be profitably raised in
> confinement buildings. It isn't
> profitable for cows to be kept in
> confinement. They are most
> efficient (and profitable) grazing
> lands that aren't fit for crop
> production and also grazing crop
> residue (i.e. corn stubble). There
> are very few investors who can
> afford to buy/lease large tracts
> of land to produce all the calves
> they need for their mega feedlots.
> There are also several trends
> going on in the industry that will
> provide opportunities for smaller
> producers to stay in the business:
> 1. niche markets (i.e.) club
> calves
> 2. consumers wanting to know where
> their food is coming from (rather
> than from some mego corporation
> like Conagra). This may allow
> result in greater demand for
> freezer beef
> 3. the animal rights people are
> starting to get the ear of large
> corporations like McDonalds and
> mega grocery chains. Animals
> raised in confinement are now
> allowed more room in their cages,
> crates, etc. In Europe, where the
> animal rights people have had more
> influence, confinement feeding is
> becoming more of a rarity. I
> envision that the animal rights
> people are going to be more
> influential with the food industry
> here in the US in the next 20
> years. If that is the case I
> wouldn't be surprised if
> eventually feedlots will be
> requred to provide protection for
> cattle from rain, wind & sun.
> I also wouldn't be surprised if
> feedlots will be required to
> provide dry areas for cattle to
> lay in.
> All these restricitons will make
> feeding cattle in large operations
> less profitable. If this happens
> we will likely see more cattle fed
> on more traditional grain farms
> again (though I doubt that it will
> ever get back to the farm feedlots
> that we had in the 60's and 70's).
what are niche markets?
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