(Jamie) Welcome to Farm Factor! First Kyle Bauer and Matt Perrier discuss the importance of the cattle industry to Kansas.
(Kyle Bauer) Hi, this is Kyle Bauer. I have the opportunity to visit Matt Perrier with Dalebanks Angus. He was presenter today talking about the Beef Industry in the State of Kansas, why the Beef Industry is important or is it important? (Matt) It surely is important, Kyle. We are the largest segment of the largest industry in Kansas. We are about 54% to 55% of all agricultural receipts coming through the Beef Industry in Kansas. We produce a variety of products, we produce genetics, and we produce ideas. We’re involved in every segment of the Beef Industry here in Kansas; we’re not just statewide, but a nationwide and a world leader in beef. (Kyle) I’ve actually run those numbers from time to time and, of course, it varies from year to year. The price of grain, the price of cattle, but more or less it’s about 50% of all the AG industry in the State comes down to beef, one way or the other. That’s pretty unique in this country. (Matt) Yes, it is. Especially, like we said, we’re not just focused in one segment. There are some areas in the country that mainly feed cattle; there are some areas in the country that are mainly cow/calf producers. We would have a pretty well balanced industry in all segments, from the seed-stock genetics, all the way down to the retail segment. (Kyle) In processing them and all the way down to the point that they get exported or sent around this country, why is it that we have been able to develop such a broad industry? (Matt) I think it’s the relationships that we have. Like I said, within our state borders, we have folks that are involved in a lot of those different segments. We’re getting to the point where if we finally are a consumer-driven organization instead of just another commodity. As we share those ideas, as we share those experiences, and share what it is that makes all of this money in the industry. I think we grow our demand for all of Beef and grow the pie larger, instead of just trying to steal a profit from one person up or down the industry chain. I think those relationships that we have are very valuable in that effort. (Kyle) Truly, when it comes to building an industry and a puzzle putting together, it is a thousand little pieces that make all that happen. (Matt) It is. It changes day to day, the market, no one needs to be told, is pretty volatile right now. The Beef Industry has relied on exports for a number of years. They are huge part of our business and they need to continue to be. But right now with the exchange rate value of the dollar and some of the winds have changed, blowing against trade. It’s been a challenging time to get rid of some of those pieces of the carcass we don’t consume here in the US, but are highly valued in the Pacific Rim and some of our trading partners. As we get some of those markets back, as we work harder to establish some of those exports, I think we have a really, really good opportunity to even improve on the demand that we have for beef. (Kyle) We’re visiting with Matt Perrier. He’s representing the Beef Industry today. He’s with Banks Angus as well as works with KLA. This Kyle Bauer, reporting.
(Jamie) Folks come back after these messages for this week’s Kansas Soybean Update.