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Smaller feedlots decline Big feelots get bigger

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Anonymous

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by Darrell R. Mark, Ph.D. Today 2/28/2005 3:29:00 PM


In The Cattle Markets: Fewer Small Feedyards In 2004 & The Big Feedyards Get Bigger



90,176 feedlots had a combined inventory of 13.7 million head in 2004 and marketed 26.2 million head, according to USDA Cattle on Feed reports. The total number of feedlots decreased by 3,029 (3.2%) since 2003, but inventory fell only a half percent. Feedlots with a capacity of 1,000+ head accounted for 82.2% of all feedlots, up from 81.5% of the total in 2003.



The general trend towards fewer, larger feedlots continued in 2004. The number of feedyards with 1,000-3,999 head and 4,000-15,999 head declined by 1.4% and 2.6%, respectively. The inventory for the 1,000-3,999 head feedyards increased by 3%; however the inventory of the 4,000-15,999 head feedyards decreased by 4%. The number of feedlots with 16,000-31,999 head and 32,000+ head were up 0.7% and 3.3%, respectively, leading to inventory increases of 1.8% and 1.2%, respectively. The average size of the feedyards with 1,000+ capacities was 5,193 head in 2004, up from 5,103 head in 2003. With a total capacity of 16.6 million head and an inventory 11.3 million head in 2004, the 1,000+ head feedyards were about 68.1% full, similar to last year. Iowa saw the largest decrease (15) in the number of 1,000+ head feedyards; however, cattle inventory increased by 88,000 head for the remaining Iowa feedyards. Texas feedyards realized the largest reduction in inventory numbers with a decrease of 130,000 head.



2004 saw a reduction of 3,000 feedyards with capacities less than 1,000 head. The 88,000 feedlots with less than 1,000 head had an inventory of 2.4 million head in 2004, down 4.3% from 2003. This puts the average inventory of these feedyards at 27.8 head (compared to 28.1 in 2003). Iowa and Minnesota lost 1,000 and 1,100 small feedyards each. The number of small feedyards increased in Illinois, Indiana, and Wisconsin.
 
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Anonymous

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Can you explain why ranches are getting bigger Nebrusker?

Would that be considered "rancher concentration"?




~SH~
 

Bull Burger

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It doesn't surprise me the smaller lots quit. The larger lots have people in each segment devoted to what they do best; marketer, nutritionist, etc. The smaller lots have to be sharp to compete. I took a bath on some two year olds heifers that lost calves, only because the guy thought it was easier to haul them 400 miles to an auction where they bought $10 under the market. After that experience, I will seek out a larger efficient lot with more marketing opportunities.
 
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Anonymous

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Nebrusker: "There are a lot of factors I can think of."

None of which you mentioned as they would be the same reasons feedlots and packers have gotten bigger.

EFFICIENCY!

OH BUT THAT'S DIFFERENT!


~SH~
 

Mike

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~SH~ said:
Nebrusker: "There are a lot of factors I can think of."

None of which you mentioned as they would be the same reasons feedlots and packers have gotten bigger.

EFFICIENCY!

OH BUT THAT'S DIFFERENT!


~SH~

Wouldn't have anything to do with the lesser amount per head the producer has left after expenses, would it?
 

Murgen

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I'm sure margins are getting tighter for all sectors of the Industry. That's why you have to move to more volume.
 
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Anonymous

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Mike: "Wouldn't have anything to do with the lesser amount per head the producer has left after expenses, would it?"

Precisely why feedlots and packers have gotten larger, EFFICIENCY!



~SH~
 

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