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WALMART                                                                                The Midwest Cattleman · September 15, 2022 · P14
      continued from page 3              is scheduled for September,  and  complements Walmart’s  some capacity to the industry
                                         with the facility opening in  regeneration           commitment and provide an opportuni-
      want freshness and afford-         late 2024.                         to  improve  grazing  manage- ty for producers to integrate
      ability, but they also want to        In March, North Platte’s  ment.”                                  their business of raising qual-
      know where their food comes        Community Redevelopment              Sustainable Beef LLC will  ity cattle with the beef pro-
      from. By sourcing beef direct-     Authority (CRA) unanimous- work with cattle feeders and  cessing portion of the indus-
      ly from farmers and ranchers,      ly approved a contract with  ranchers to understand crit- try and do it in a sustainable
      Walmart is aiming to change        Sustainable Beef, opening  ical elements of the supply  manner,” said David Briggs,
      the dynamics of the beef in-       the door for tax increment  chain  cycle, such  as grain  CEO of Sustainable Beef
      dustry, Neal wrote.                financing for the infrastruc- sourcing and grazing man- LLC.  “During this journey
         The recent announcement         ture for the new plant.            agement.  Animal care will  we found that Sustainable
      sends Walmart further down            “At Walmart, we are dedi- follow the Five Freedoms,  Beef and Walmart aligned on
      that path. Of Sustainable          cated to providing high-qual- and there will be a consis- continuing to improve how
      Beef, Walmart says the part-       ity, affordable beef to our cus- tent approach to antibiot- we care for our animals and
      nership helps supplement           tomers, and an investment  ic use and reporting  across  crops and provide consumers
      the current beef industry and      in Sustainable Beef LLC will  herds in line with Walmart's  the positive experience of en-
      provides additional oppor-         give us even more access to  Position on  Antibiotics in  joying quality beef.”
      tunities for ranchers to in-       these products,” said  Tyler  Animals, which asks suppli-               Walmart said its invest-
      crease their business. As part     Lehr, senior vice president  ers to adopt and implement  ment  in Sustainable Beef is
      of the investment,  Walmart        of  merchandising  for  deli  American Veterinary  Medi- the latest step in the retail-
      will also have representation      services, meat and seafood,  cal Association Judicious Use  er's commitment to increase
      on Sustainable Beef’s board.       Walmart U.S. “We know Sus- Principles  of Antimicrobials.  access to high-quality beef
         Sustainable Beef’s plans        tainable Beef LLC has a re- All of these components will  at an affordable price for its
      are to process 400,000 head        sponsible approach to beef  help Sustainable Beef LLC to  customers, while boosting
      per year (about 1,500 head         processing, one that includes  improve and refine the beef  capacity for the beef indus-
      per day), 100,000 of which         creating long-term growth  supply chain to provide qual- try  and  ensuring  long-term
      will be cows. The plant would      for cattle ranchers and fam- ity beef for our customers.             economic viability for cattle
      employ 875 workers and is          ily farmers. This investment         “We set out on a journey  ranchers.
      expected to generate anoth-        provides greater visibility  two years ago to create a new
      er 1,000 jobs in supporting        into the beef supply chain  beef processing plant to add
      businesses. Groundbreaking

      BE PREPARED                        one answer for all producers.      PREPARE FOR MARKETING

      continued from page 11                The markets, and where we       continued from page 6
                                         are in the cattle marketing
      prices are high and many mar- cycle, should impact the deci-          Table  1 is  $186.20/cwt.  The  cash prices will match these
      ket analysts suggest that cull  sion. Currently, cow numbers          November price of 450-pound  expected prices.   However,
      cow prices may remain high  are extremely low in the US               steers (M/L No. 1) in Okla- futures  prices  and  corre-
      this fall. If the cost of replace- which normally results in high-    homa City have historically  sponding expected Oklaho-
      ment breeding stock remains  er calf prices. I got some incred-       averaged $33.72/cwt. higher  ma prices may provide some
      reasonable, then the optimum  ible advice from an experienced         than November Feeder Fu- guidance for marketing plans
      decision would be to cull and  beef producer a few years ago.         tures  (basis) leading to an  and expectations and provide
      replace for this year.             Pap had run over 1,000 cows        expected November price of  the foundation for risk man-
         Most years, the decision to  for decades and his strategy          $219.92/cwt. (The combined  agement programs for calves
      cull open cows isn’t easy. Some  was when prices are high, own        auction cash price in late Au- or retained feeder cattle.
      would argue to cull all females  as many cows as you can and          gust was $211.49/cwt.)
      that cannot conceive in her en- sell as many calves as you can.         Of course, futures prices
      vironment because her genet- Extend the calving season if             adjust constantly and there
      ics did not match her environ- you need to because every calf         is no guarantee that actual
      ment or level of management.  sold was profitable. Pap didn’t
      But genetics for reproduction  care to keep open females at
      are lowly heritable, so genetics  all. However, when prices were
      are a very small contributor  low, Pap controlled the calving
      to reproductive failure.  Also,  season tightly and culled cows
      if you only have a drought  that didn’t conceive. Pap’s phi-
      and excessive heat stress once  losophy was when times were
      every 5-10 years, should you  lean be efficient and when
      penalize a cow whose genetics  times were good, be productive.
      match the environment most  Good advice. It appears we are
      of the time? To make the de- in an excellent position in the
      cision even more challenging,  cow cycle with low numbers
      often cows that are culled are  and impending higher feeder
      replaced with bred two-year  calf prices. Might be time to
      olds, who are inherently re- keep as many as you can afford
      productively inefficient, will  to prepare you to take advan-
      require additional feed inputs,  tage of the higher cattle prices
      and may take two years to  on the horizon.
      reach optimum productivity. In
      the long run, what really costs
      more? Interesting problem to
      think about and certainly not
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