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<blockquote data-quote="Anonymous" data-source="post: 5973"><p>> I doubt that it will ever happen</p><p>> that "all" calves will</p><p>> go to feedlots. Like the poultry</p><p>> and swine industries, I anticipate</p><p>> that the beef cattle business will</p><p>> become much more consolidated.</p><p>> There will be fewer</p><p>> "players" in the</p><p>> business but they will be much</p><p>> larger in size.</p><p></p><p>> However, one thing that</p><p>> differentiates the cattle business</p><p>> from the swine and poultry</p><p>> businesses is that hogs and birds</p><p>> can be profitably raised in</p><p>> confinement buildings. It isn't</p><p>> profitable for cows to be kept in</p><p>> confinement. They are most</p><p>> efficient (and profitable) grazing</p><p>> lands that aren't fit for crop</p><p>> production and also grazing crop</p><p>> residue (i.e. corn stubble). There</p><p>> are very few investors who can</p><p>> afford to buy/lease large tracts</p><p>> of land to produce all the calves</p><p>> they need for their mega feedlots.</p><p></p><p>> There are also several trends</p><p>> going on in the industry that will</p><p>> provide opportunities for smaller</p><p>> producers to stay in the business:</p><p></p><p>> 1. niche markets (i.e.) club</p><p>> calves</p><p></p><p>> 2. consumers wanting to know where</p><p>> their food is coming from (rather</p><p>> than from some mego corporation</p><p>> like Conagra). This may allow</p><p>> result in greater demand for</p><p>> freezer beef</p><p></p><p>> 3. the animal rights people are</p><p>> starting to get the ear of large</p><p>> corporations like McDonalds and</p><p>> mega grocery chains. Animals</p><p>> raised in confinement are now</p><p>> allowed more room in their cages,</p><p>> crates, etc. In Europe, where the</p><p>> animal rights people have had more</p><p>> influence, confinement feeding is</p><p>> becoming more of a rarity. I</p><p>> envision that the animal rights</p><p>> people are going to be more</p><p>> influential with the food industry</p><p>> here in the US in the next 20</p><p>> years. If that is the case I</p><p>> wouldn't be surprised if</p><p>> eventually feedlots will be</p><p>> requred to provide protection for</p><p>> cattle from rain, wind & sun.</p><p>> I also wouldn't be surprised if</p><p>> feedlots will be required to</p><p>> provide dry areas for cattle to</p><p>> lay in.</p><p></p><p>> All these restricitons will make</p><p>> feeding cattle in large operations</p><p>> less profitable. If this happens</p><p>> we will likely see more cattle fed</p><p>> on more traditional grain farms</p><p>> again (though I doubt that it will</p><p>> ever get back to the farm feedlots</p><p>> that we had in the 60's and 70's).</p><p></p><p>what are niche markets?</p><p></p><p> <a href="mailto:marcus_charolais@hotmail.com">marcus_charolais@hotmail.com</a></p></blockquote><p></p>
[QUOTE="Anonymous, post: 5973"] > 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? [email=marcus_charolais@hotmail.com]marcus_charolais@hotmail.com[/email] [/QUOTE]
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