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September 2007
Articles
Buy & Sell
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The business strategy at Bud Hill Feedyard, owned and
operated by Bud Hill, can be explained in two sentences.
“Buy and sell every week.” “Sell high when you buy high, sell
low when you buy low.” Bud Hill has fed beef cattle for 50 years in Castro County,
building on the enterprise his father Homer started with the
rest of the pioneering Hill family members in the early 1900s.
He and nephew Terry Hill operate a private feedyard at Dimmitt
while nephew Dennis owns and operates the commercial
Hill Feedyard at Hart.
Less Milk
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Ahh, marbling. Those tiny white specks of
intramuscular
fat that make a steak so tender, so flavorful, so juicy. But
to cattlemen, marbling is more than a factor in what makes a
great meal — it can mean a better quality grade and therefore a
more valuable product. It was once thought that marbling was
something to think about toward the end of a calf’s
growing period, but Dr. Larry Corah, vice president of Certified
Angus Beef LLC, says recent research indicates the contrary.
Stocker Calves
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As cattle are selected to meet market specifications, producers find an increasing need to devote more attention to herd nutrition to turn a profit. Each year, more than 80 percent of all beef calves born in the U.S. will be grazed on pasture for 60 to 140 days after weaning.
These calves, known better as stocker calves, are young, lightweight animals raised primarily on forage diets until they reach a desired
weight. They are then used either as part of a replacement herd or placed in the feedlot.
Producers Benefit
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Packer ownership does not affect the cattle market negatively as many producers have feared.
In fact, a 25 percent reduction in alternative marketing agreements (AMAs) would result in a $310 million drop in cattle producer revenue per year.
These are some of the findings from the massive Livestock and Meat Marketing study conducted by USDA’s Grain Inspection, Packers and Stockyards Administration.
James E. Link, GIPSA administrator, described the study during TSCRA’s annual convention in March. Link is a former director of Texas and Southwestern Cattle Raisers Association.
“This was the most extensive survey and analysis of the livestock market ever conducted,” Link said.
Impetus for the study came during debate on the 2002 Farm Bill.
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