Dave Maples: From Dave’s Desk

FROM DAVE’S DESK DAVE MAPLES

Executive Vice President

Corn is at an 8-year high and double last year’s price. The grain scenario will continue as a dominating factor in feeder cattle prices. Unfortunately, the live cattle segment that we operate in has borne considerable pain over the past two years with what seems to be everlasting regularity. The national beef industry is at a crossroads. If processors cannot accomplish the task of providing sufficient cattle into the supply chain, then producers must cut the size of the herd. The signal is for processors to ramp up to maximum levels with some estimates of $600 to $800/head profit, but whether they can, is the big question that needs to be answered. The balance or lack of any balance of margins among the different sectors is a must and has to be corrected in order for cattlemen to produce beef or to stop herd liquidation. The challenge will be for you and the entire live cattle sectors to navigate through this difficult path profitably. The reality is that the beef industry is a tough business and there are a lot of variables to consider. With any disruptions in the supply chain there are consequences. Our industry has gone through some major disruptions. But if you stop and think about it, we have done it to ourself. Processing capacity is the major problem today. If you look at the past year of 2020 the industry processed a weekly average of 483,134 head in 2007 that number was 527,249 per week. Our industry has closed or have not rebuilt packing plants. Where the pork industry has added capacity. There are efforts underway now to add beef capacity but that will take a couple of years.

Cow Country

Cow Country will be getting a new look next month if everything goes as planned. CCN is a very important component to the Kentucky Beef Industry First it has been the communication medium to the people that have an interest in and are invested in the cattle business. Also, CCN is very important to the Kentucky Cattlemen’s Association from both a communication and financial point of view. Over twenty years ago when I started this job moving to a magazine format was a dream but when you looked at the financials it did not pencil. What has changed in twenty years? The print industry somewhat like the cattle industry has gone through lots of change. I think the print industry has been way more brutal. Twenty years ago, CCN was printed at the Winchester Sun then the Lexington Herald Leader and for many years now the Louisville Courier Journal. Two months ago, the printing presses were brought to a halt in Louisville and CCN has been printed in Indianapolis. I knew last month that Carey Brown was not happy and that this new engagement was not going to work. I can’t say enough about the diligent effort that Carey has gone through to dig out a solution to our problem. I would expect the outcome will be a win-win for both the readers, advertisers and the Association.

CHANGE IS COMING FOR COW COUNTRY!

Beginning in July 2020 Cow Country will be in magazine format. Members have been asking for years and we are thrilled to finally offer it. Ad sizes will change beginning with the July issue and pricing will change starting with the October 2021 issue. See below for the updated ad dimensions and stay tuned in future issues for more details. We are excited to bring you a higher quality publication with the same great cattle industry news you have come to expect.

New ad dimensions will be sent out to all current advertisers and posted on kycattle.org by May 1. Feel free to call or email with any questions. As always, we appreciate your support!