Derrell Peel Writes Feedlot Business A Clean Bill Of Health Noting Aggressive And Current Marketings

By Dr. Derrell Peel

Feedlot operators are bucking a trend of recent years, sending bigger and bigger carcasses to packing plants. In 2017 so far, carcass weights of cattle being shipped off are significantly lower compared to those seen last year. Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel says that is a good thing, and it is helping us manage the larger numbers of cattle now entering the pipeline. He talked to Radio Oklahoma Ag Network Farm Director Ron Hays from a mathematical standpoint as to why feedlots are making the switch.

“When you multiply the increase in slaughter, we’re having and we expected to have,” he said, “you offset part of that with this decreased carcass weight. So, it moderates the increase in beef production that’s going on. That’s the immediate effect.”

Generally, though, lower carcass weights in a time of growing supply, to Peel, is indicative of a healthy feedlot situation right now. He insists that is the best strategy to handle the larger number of cattle in production currently.

“These feedlots have continued to market cattle very aggressively, very timely,” Peel pointed out. “They’re current, and you know, that’s good!”