Managing for Profit

Has the cattle industry reached a ‘tipping point’?

A Nebraska cattle organization is voicing concern with the continued downward trend in negotiated cash sales of fed cattle, and the long-term impact it could have on the cattle industry.

Jeff Stolle, vice president of marketing for Nebraska Cattlemen, says the growing use of non-cash mechanisms in the fed cattle trade, such as formula and contract transactions, has led to reduced competition and increased market volatility.

“I think it’s safe to say there are a lot of people in the industry—a good many people in the industry right now—that feel like we’ve kind of reached a tipping point, if you will,” Stolle says.

Brownfield visited with Stolle about the group’s concerns.

AUDIO: Jeff Stolle