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MARKET REPORT The Midwest Cattleman · April 23, 2020 · P28

FROM THE
Live Cattle Feeder Cattle Daily

PILOT’S SEAT:

The Integrity Beef

Sustainability Project

By Myriah Johnson, Ph.D., Economics Program Leader and Deke Alkire, Ph.D.

Ten years ago, sustainabil- Consumers have a desire State Foods and McDonald’s the beef indus-
ity seemed like a fad that to know that their food is pro- set out to test the United try is doing a
would surely fade away. Now, duced in a sustainable man- States Roundtable for Sus- great job rela-
sustainability has taken cen- ner. Moreover, shareholders in tainable Beef (USRSB) met- tive to sustain-
ter stage, driving beef de- many food companies are fur- rics and align the segments ability. This
mand and many conversa- ther pressing the issue. With of the beef supply chain. This should come
Live Cattle: My thoughts center around this market stabilizing now. I’ve been
Feeder Cattle: All you have to do is look at the corn market for a reason for the
placing a bullish tilt to this market for some time now. I may need to temporarily pilot project tracked cattle as no surprise
tions today. Sustainability all of these questions about pull-back in feeders. If I owned a feedlot I’d be nervous to say the least. I do feel
has never been more talked food, and specifically beef the feeder market has overdone it to the downside and it will be tough to break it
place this on “hold” for a while. The higher placements the last three months will from birth to burger, across given that pro-
about than it was at the Na- production, it is not surpris- two years. In total, 36 cow- ducers continue to do more
further. The early corn harvest has most feeder buyers in the field and I don’t think
have a negative impact on prices yet, so like they say, “All good things come to those
they’ve really had time to concentrate on buying feeders. Let’em get caught up a
who wait”. I see production numbers staying over last years’ levels until at the
tional Cattlemen’s Beef As- ing that the conversation has calf producers provided more with less. Compared to the
least the end of the year. Beef shipments have been lagging last years’ levels now
little and they’ll head to town.....checkbooks in hand....bulging with “corn” money.
sociation annual trade show come all the way back to the than 4,300 calves, which re- mid-1970s, the U.S. produces
This market will rally....wait and see.
for about a month. Two weeks ago they were 8% lower than last year. This weeks
and convention this year. The beginning of the supply chain. sulted in more than 3.5 mil- the same amount of beef with

report showed exports a whopping 56% lower than last year. This ain’t good. Low
opening session at Cattle- In the most recent Center for lion pounds of beef worth one-third fewer cattle. Addi-
imports and high exports have held this market up all summer. We’re starting to
men’s College was headlined Food Integrity report,
lose some of that. I just can’t pull the trigger yet on long term bullish hopes. only around $6 million. While this tionally, hundreds of thou-
25% of con- is a small project relative to sands of producers are Beef
sumers sur- the U.S. beef industry, these Quality Assurance (BQA) cer-
Trading commodity futures involves substantial risk of loss
veyed strong- producers manage more than tified, and the beef sector only
and my not be suitable for all investors. The recommendations
Rich Nelson ly agreed with 92,000 acres and have a pos- contributes 3.7% of the U.S.
express opinions of the author. The information they contain is
Allendale Inc. Allendale Inc. obtained from sources believed reliable, but is in no way guaran-
teed. The author may have positions in the markets mentioned
815-578-6161 the statement, itive impact on their ecosys- greenhouse gas (GHG) emis-
including at times positions contrary to the advice quoted herein.
sions. Each of these sustain-
rnelson@allendale-inc.com “I trust today’s tems. Opinions, market data, and
food system.”
ability areas continues to im-
recommendations are subject to change at any time.
What Does this Report Mean to Me?
Self-Assessment Tool
prove. So, it is quite difficult
So, producers
Further, these producers,
have an op-
to point fingers and say that
Q #1 portunity to and our collaborators, were one steak is “sustainable” and
the first to test a new self-as-
participate in
What do you think the price of fats will be in April 2011 sessment tool created by this another is not. Two steaks
could have been produced
and positive-
project. This free, web-based
Answer: It’s hard to see the forest for the trees here, but peering through the foliage I see $105.00 fats on the horizon for April. Demand is
ly impact this
going to have to kick in though in order to get it. conversation. tool provides an opportunity under the exact same condi-
tions, yet one does not have
for each user to evaluate their
Q #2 company’s sustainability in a the sustainability verification
by the talk “Sustainable Beef: The Sustainability Pilot or label.
Due to the recent break in feeders, would you be holding your fall-weaned
Beyond What’s Possible.” Project private and practical way.
A self-assessment is avail- Benefits of Communica-
calves for a while or letting them go?
During the CattleFax session, In 2017, an ambitious able for each of the production tion Across the Chain
Randy Blach also spoke on group came together to es- segments in the beef industry:
Answer: What ever happened to the easy questions? This will depend upon your weaning sched-
This project proved to be in-
the role that sustainability is tablish the Integrity Beef cow-calf, feedyard operator, sightful for everyone involved.
ule and your available feed supply. I’m long term bullish the feeder market but the “reality” of
now playing in beef. Beyond Sustainability Pilot Project.
right now probably dictates letting them go. If you keep them for an extra 30 days, make sure you
this one convention, sustain- Representatives from Noble packers or processors, retail Supply chain alignment is not
common in the
or food service,
minimize the grain in the ration. Grow them on good forage....”sell” $4.50 corn. If the fat market
ability is now commonplace Research Institute, Integrity and auction
among many conversations Beef Alliance, Beef Marketing market. Each Supply chain beef industry
stays sluggish and corn prices don’t moderate, about the only thing you’ve got to hang your hat on
due to its seg-
and is increasingly discussed. Group, Tyson Foods, Golden segment’s as- alignment is not mented nature
for “higher feeders” is “Hope”.
November 6th
sessment asks common in the beef and, therefore,
thought-pro- industry due to its takes signifi-
voking Auction segmented nature cant planning
ques-
tions about and coordina-
Lunch at 11:00 a.m.
specific man- and, therefore, takes tion. Our col-
agement prac- significant planning laborators were
Sale at 12:30
tices relative and coordination. committed to
Sale Offering
to the USRSB achieving this
16 - 2010 Heifer Calves Jan. - May
and took the
metrics for each RH Standard Lad 0313
16 - Breeding Bulls 7 to 18 months
priority indicator area. Solid As A Rock Sire Group We
16 - Spring Calving Bred Females This time to make it happen.
tool will allow all producers hosted a series of meetings
Reynolds Herefords
16 - Spring Calving Black Females
to benchmark their current and tours at each production
Bred to Hereford Bulls
1071 County Road 1231
8 - Fall Calving Pairs
sustainability and make im- stage to provide perspective
6 - Show Steer Prospects
provements over time. to all members about the spe-
Huntsville, MO 65259
Both Horned & Polled Offered
Home: 660-277-3679 • Matt: 660-676-3788
Results: Beef Industry cific challenges in each sector.
November 5, 2010 Sale offerings on
Continues to Improve Everyone appreciated the op-
Display 3:00 P.M.
• Barb: 660-676-4788
portunity to learn more about
CHB Dinner at 6:00 P.M.
Overall, we observed that Email: reynoldscattle@cvalley.net
Call or E-Mail for Catalog
continued on page 34