11/19/2009 7:04:00 AM Cattle feeders told to persevere
Compiled by Kindra Gordon
Five hundred cattle feeders gathered in Amarillo, TX, in late October for the 2009 Texas Cattle Feeders Assocaition (TCFA) Convention. In his convention address, 2009 TCFA Chairman Monte Cluck described being "inspired by the attitudes of the members."
Cluck said, "Here we are in one of the toughest times ever for our business, and yet no one is ready to quit the fight. The strength and the will to survive and continue in the beef business are what differentiate us from any other industry, especially from non-agricultural industries."
In saluting cattle feeders' resolve in the face of adversity, Cluck reminded them that the industry has survived many other tough times such as the beef boycott of 1973, "The Wreck" of 1974, the dairy herd buyout in 1986 and the BSE episode of 2003. Cluck said he believes the industry's ability to fight its way through those earlier ordeals proves that the cattle feeders can always come back, and will do so again, even in the face of a severe recession.
"Overcoming a global economic collapse is a real battle, but we will get through it. Nothing will stop us from bouncing back. Not radical animal rights activists. Not yellow journalism. Not junk science about imaginary threats to the environment. And for darn sure - not socialism," he said. "We will stay on our feet and fight our way back because we are a tough bunch inspired by the generations who came before us."
Cluck did discuss his concern that cattle feeders' recovery from recent heavy financial losses could be hampered by bad ideas coming out of Washington, DC, such as ethanol subsidies, legislation to restrict the use of animal health products, the potential government takeover of health care, the threat of higher taxes and flawed environmental policies.
With so many challenges to confront, Cluck said beef producers must maintain a united front. "We must stick together when our industry is threatened. If someone or something is attacking the beef business, that's a threat to all of us - corporate, independents, our vendors, and yes, even the packers. Let's stay united. We're all in this together," he concluded.
Cattle-Fax Executive Vice President Randy Blach also addressed the TCFA annual convention and emphasized the continued need for restoring beef export markets.
Blach said, "I don't want to sound like a broken record. I've said this for the last several years, but I still think this [exports] is an area where we're really missing the boat as an industry."
He added that beef producers need to work harder to get "the right people's attention and get some of these markets opened up."
Blach said, "It would have a tremendous impact on what we're able to merchandise cattle for."
He explained, "We still aren't back to the same levels of beef exports that we were pre-BSE. We were exporting 2.5 billion lbs. in 2003. We're going to be lucky to be at 1.8 or 1.9 billion lbs. this year."
According to Blach, if US beef were operating under the same trade protocols with Japan as it is with South Korea, "it would be worth another $60 to $70 per head across our fed cattle market." Getting into China also needs to be a priority, he says.
Overall, the decline in beef demand is the biggest challenge facing the industry, according to Blach. "We've averaged $83 to $84 on fed cattle this year. If we had the same demand we had a year ago, our market would be averaging $94 to $95 per hundredweight."
On a brighter note, Blach said that because supply levels are well in check, a significant increase in fed cattle prices could come as the economy recovers, possibly toward the end of 2010.
This information was compiled from reports in the Nov. 6 TCFA Newsletter. Newly elected TCFA officers at the convention include: Mike Engler, Amarillo, Chairman; Bo Kizziar, Spearman, Chair-Elect; and Jim Peters, Quemado, Vice-Chair.
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