Structure of the Beef Cattle Industry

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Structure of the Beef Cattle Industry

• Industry is very segmented - numerous phases of
  production
• Industry is very diverse - almost infinite number
  of environments, types of resources, etc

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Structure of the Beef Industry

• Cow-calf Operations - Purebred
• Producers of germ plasm -- genetic information
  for the beef industry
• Animals are recorded (or eligible) in breed
  association registry have record of pedigree
• Probably only 4 of cattle reproducing needs to
  be PB

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Goals/Objectives/Challenges of the PB Producer

• Have a sense of seed stock needs of commercial
  cattlemen
• Develop a planned mating system
• Have long range goals
• Merchandise - be a salesperson
• Stay current

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Structure of the Beef Industry

• Cow-calf Operations - Commercial
• Raise cattle of nondescript origin to produce
  final product
• 89 of operations have less than 100 head but
  these account for only 52 of total cows
• These operations are concentrated in areas of
  abundant, inexpensive forage -- at most times of
  the year cows nutrient requirement can be met by
  forage alone
• Warmer climate advantage?? Probably from a
  forage standpoint
• Majority of the operations are spring calving
  -- make use of grass when cows have the greatest
  need

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Structure of the Beef Industry

• Stocker Operations (yearling, backgrounder,
  others)
• Weaned calves to graze grass, range, or any
  available forage
• most in warmer climates to place fall-weaned
  calves through the winter
• Consume high forage diet (lower energy), weaned
  calf is physiologically ready to develop muscle
  and skeleton
• Need any form of abundant (cheap) mid quality
  forage
• corn stalks
• wheat pasture, hay field regrowth
• harvested forage concentrates in drylot

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Non-feed costs often dictate what is needed for
economical gain
? feed costs are associated with a cost per
weight gain (/lb) ? non-feed costs are usually
associated with a cost per time (/day) ? can
not afford slow gain if non-feed costs are high
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Structure of the Beef Industry

• Feedlot Operations
• Feed calves and yearlings a ration that is
  moderately high to very high in energy -- rapid
  growth and some fattening
• More rapid gain with more expensive feeds than
  the stocker operations -- higher nutrient
  concentration
• Where are feedlots located??
• Dry, moderate climate
• Near source of feed, especially grain
• near source of feeder cattle
• Population centers
• Others

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Types of Feedlots

• Farmer/feeder
• smaller - usually less than 2-3,000 head
• raise much of their own feed

• Commercial lot, one-time capacity more than 2,000
  head
• May own the cattle
• May custom feed

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Commercial Feedlots
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Farmer/Feeder Feedlots
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Structure of the Beef Industry

• Packer Operations
• Slaughter and carcass processing -- did not
  process carcasses in the recent past
• Eliminated some of the middle men
• No butchers at super markets
• Packing industry is now controlled by 3 major
  companies (concern about packer concentration)
• IBP
• ConAgra
• Excel