Gage County
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Beatrice NE 68310
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News Column

Paul C Hay, Extension Educator

Future of the Small Beef Producder

Dr Gary Smith of Colorado State University speaking at the Range Cow Beef Symposium in December addressed the issue of the future possibilities of the small cow calf producer. Here are a few of his points.

Historically we have seen a wide range of cattle production costs and a narrow range of cattle values. He feels there is currently both a wide range of production costs and a widening range of cattle values. Making it possible for the small herd manager to capture profit potential from low cost production and higher value in the marketplace. One Gage County producer is on that tract by qualifying for inclusion in the Japanese trade market through the Nebraska Corn Fed Beef Program.

Small scale beef producers need to assess and address how their operation will meet future needs by: a) making sure their genetic herd makeup and management practices fit the market criteria for their buyer. Commodity cattle just as commodity hogs have done in the past will have less value and more variable value over time. b) retain ownership of the cattle through

finishing, this may involve joining with other producers to fit the pens of your chosen finisher lot. The farther you can have ownership in the farm to fork chain the higher share of the income you can have. Direct marketing is the ultimate, but only likely to fit a few producers, hence the other options of marketing alliances. c) giving up some of that famous Nebraska free spirit (I'll will do it my way when and where I want). Complying with transactional committed marketing options may mean following exactly the management choices in health care, ID, feeding, and handling.

There will be a wide variety of options open to producers from partial ownership in packing plants both large and small (National Beef Company), to joining and alliance or partnership (Harris Ranch, Angus Beef LLC, Certified Hereford Beef LLC), to supplying cattle to a producer owned brand (Nebraska Corn-Fed Beef, Nolan Ryan All Natural Tender Aged Beef), to meeting packer demands (traditional packer market grid, or emerging options like Laura's Lean, Maverick Ranch Beef, Coleman Natural Beef). I feel the important thing for producers today to do is decide on where they fit best and work toward that goal. This is scary because it involves change and perhaps a plan quite different from a neighbor's choice. It may mean getting new seed stock suppliers and getting your feed supplier and veterinarian to understand your option and design a program to fit your needs.

View other Gage County News Columns & News Letters: http://gage.unl.edu/news/news.htm

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