Cattle collusion accusations debated

In talking about the cattle market, “it all comes back to supply and demand,” said Rex Bland, a part-owner of the Cal-Tex Feedyard in Trent. Bland said he may receive cattle bids from two different buyers, one in the Texas Panhandle and the other in South Texas. “At times, when there’s a lot of cattle around, it’s hard to get a competitive bid,” Bland said. Currently, a lack of supply has led to higher beef prices, however. “We don’t have enough cattle in the United States,” Bland said. Average beef retail prices have climbed from $4.18 per pound in July 2009 to $4.44 per pound last July. The tight supply of cattle resulted from lean years for producers battling factors such as drought, high feed prices and the recession. Despite the recent boost, some producers are speaking out about what they describe as a lack of competitive offers for their cattle. The Associated Press interviewed some cattle producers who reported having no choice but to sell the vast majority of their cattle to one buyer. An AP analysis of shipping logs and sales receipts confirmed their accounts. “You either give them to these guys, or you have no market,” said Bob Sears, who ran one of Nebraska’s biggest feedlots before declaring bankruptcy in March. Not everyone agrees, however. “Our members believe they are getting competitive bids,” said Ross Wilson, chief executive officer of the Texas Cattle Feeders Association. Ranchers may send their cattle to a feedlot so the animals gain weight before being slaughtered for food...more