The beef industry?

[cowman]

I posted over on Rural Issues about a marketing system Highland feeders has? It involves cow/calf producers and Highland feeders entering an agreement to produce a branded beef product? Of course the cow/calf producer has to meet some certain specs and conditions to participate in this program...not sure about genetics, but no hormones, no anti biotics, no feed additives.
Now I would say this is a win-win situation?The cow/calf guy gets a premium, the feedlot feeds these cattle for a premium market...and everyone makes more money?
It got me thinking how this sort of setup might become the norm? So instead of trying to be all things to all people, a beef raising system might be geared toward a targetted market...a truly integrated market if you will?
The hog business has changed radically in the last several years? To hit the index you need to have the right genetics, the right feed, the right system? The integrated value chain decrees what genetics you use, the exact feeding system, health concerns, even the facilities?
Will this happen in the beef business? I'm not talking about niche markets here but the vast majority of the beef business?
Do you ever see a day when you phone up an "approved breed provider" and order a couple of bulls? Or 20 heifers?
In all reality it is probable that these animals would be composites...Maybe they would be named "Cargill line 1" Or "Tyson line 4"?! Isn't that exactly what has happened in the hog business? Don't those same composite hog strains deliver a very predictable product?
I know this will cause a lot of purebred people to cease operations...but will it produce a more predictable product, better overall production and efficiency?
I do realize cows are raised in vastly different environments and maybe "Cargill line 1" wouldn't work in the same area as "Tyson line 4", but surely there would be a market for both...just targetted to a different market?
I wonder how people see this?
In the past I've posted on here about my neighbors beefbooster M4 herd? I get down a lot of roads and I see a lot of purebred cattle. I truly believe his calves this fall were the best in the country! Like peas in a pod...and not a poor one in site! That is just my opinion...and I told him so!

[cswilson]

I've dealt with Highland for years-we've fed at other 'Big' lots in Alberta before but Bernie and his staff have been by far the best. When good people do a great job it's pretty easy to keep going back. As far as forming company specific breeds to meet specs-I think as beef producers are options are quite a bit more open than in the hog business. Even before company hog lines that weren't all that many hog breeds being used.

[grassfarmer]

I have been very impressed by what i've read of the operation they run at Highland Feeders. I contact them before we sell our calves to let them know we have cattle suitable for their "natural" program but as yet I don't think they have bought any.
I've looked at their retained ownership deal and thus far have not tried it. The problem with it to my mind is that the risk is all borne by the cow/calf producer. It costs more money to feed cattle for the "natural" program yet there is absolutely no guarantee that your cattle will actually be sold into, and earn a premium from a higher price "natural" market. It is clear that with custom feeding the feedlot owner will make money - they have very sharp pencils and are able to protect themselves from market swings and risk by charging the customer what they need to cover their cost plus a profit margin. That's good business and I don't condemn them for that - it is just harder for the cow/calf producer to be able to get a similar security of return. Another problem for me is that to actually retain ownership of your cattle and pay the feed bills for your cattle you need them in lots of 100 head minimum. If you have less than that you get mixed with someone elses cattle and pay the average feedcost of the pen.

As to your other point on genetics I don't think the packers are particularly interested in breeds or getting the highest possible carcase quality for all their turnover. Sure, they have lines or niches where they have exacting specifications for a specific market but on the whole quality isn't a great concern especially when they are in a position to buy the different classes of cattle at exactly the price they want. Again the benefits of being in a monopoly position don't necessitate absolute efficiency to survive. I would argue that North American genetics have been driven more by the feedlot operators desire for efficient converters of the grain they are selling . This can be seen by the declining numbers of cattle grading Choice in the US over the last 20 years - a huge change propelled by the change away from smaller framed "grass" cattle to larger "grain burners" or "ruminant hogs" as some refer to them.

[cswilson]

You don't need a 100 head minimums-if you are really serious about doiung business they'll find a way to accomodate you. There's a little pen where I put my odds and ends into-as for custom feeding-there's risk in every endeavour as there are the rewards. Are cattle are fed under the 'natural' deal most times-our current pen isn't because they are spayed heifers that we implanted.