AROUND THE INDUSTRY by Kiley McKinna
Optimism—why not?
W
elcome to the Limousin 365 Fall Sale Edition! As you page through this issue, you’ll find many of the breed’s upcoming fall sales promoted, a showcase of the most relevant and progressive programs, in addition to multiple feature stories and industry news. As I write this column, pondering which direction to head, a question comes to mind—optimism, why not? Are you tired of the constant doom and gloom about Covid, politics, international affairs, droughts, fires and the never ending list of ‘stuff’ that continues to goes on and on? Folks, without a shadow of a doubt, I categorically have, probably like most of you, relegated myself to kids, cows and what I can control. That said, let’s take a deep breath, sip some morning coffee, think a little and realize what really is.
1. The commercial cattle market.
While I’m not a palm reader, nor do I have crystal ball, my predictions are often based on a good ol’ fashion boots on the ground intuition. That said, my recent industry interactions have revealed more than just a trickle of conservative optimism. Listening and leaning on producers truly integrated in the commercial cattle business, there’s a real feel of a positive market turn building. If you are a believer in supply and demand, the following quote in an article in this issue by Wes Ishmael, should give cause for optimism. “Ultimately, during the current contraction phase, CattleFax expects feeder cattle and calf supplies to decline roughly 1 million head from the cyclical peak. CattleFax expects the beef cowherd to decline 400,000 head by January 1 of next year, reaching 30.7 million head.” Given the increased demand the industry is currently experiencing, I can’t help but feel tighter supplies will lead to even more increased demand and consequently, increased prices being paid for not only feeder cattle, but for the cows and bulls that are necessary to produce them. That said, stay the course, charge forward and look toward greener pastures on the horizon.
2. Steady seedstock female demand.
Despite droughts and doubts, the female market has been remarkably steady to good. In my capacity as a sale manager, I’m pleased to share with you the up tick in demand for production cattle has been pleasantly surprising. A popular question consistently asked is what’s driving this? There are a few contributing factors that come
6
to mind: 1) A remembrance that many of our breeders are farmers first and cattlemen second. With that in mind, the increase in commodity grain prices (despite rising feed costs) has lended itself to a slight surplus of cash among many; 2) some drought stricken regions of the past few years, which happen to be populous with Limousin breeders/ enthusiasts, caught early rains this summer allowing for above average feed stuffs; and 3) let’s not forget the 2021 bull season, that by and large was very successful seeing an up tick in bull prices. Naturally, when that happens we typically experience a more robust female market albeit a slow burn.
3. Uncanny show ring acceptance.
This is simply a wild phenomenon! In my tenure running in Limousin circles for the better part of 20 years, I’ve never seen such a fevered pitch around Limousin and Lim-Flex cattle in the show ring. Without the exact number of wins sitting in front me (it changes virtually weekly), I’ve never seen our cattle be so widely accepted as evidence by the scores of “supreme” championship banners our cattle have earned across the country the past 12 months. I realize the forward movement of our breed by and large will be done through the growth of the commercial bull market, but let’s take a minute to embrace this segment of our industry as well—it’s important. Folks, particularly among young people, it’s “cool” again to have a Limousin or Lim-Flex show critter! Let’s be proud, you’ve earned the right to be—our cattle are good! All of these things exude optimism and clear cut opportunity! Every now and again it’s more than okay to take a glass-half-full approach versus the alternative. Often, an optimistic attitude will translate into positive things both in cows and in life. Conversely, the very opposite will leave you defeated before you ever leave the gate. That said, I challenge you to swing hard this fall, do the best you can and let the chips fall as they may. In closing, I sincerely hope you enjoy our Fall Sale Edition. It’s of benefit to your program and a promotional piece the Limousin breed can be proud of. A big thank you to all of the advertisers, readers and those that continue to support and offer feedback as it relates to your magazine, Limousin 365. God bless and I look forward to seeing you down the sale trail this fall. We are all in it together and Limousin proud.
• OCTOBER 2021
