Industry At A Glance: Captive Supplies

Weekly negotiated sales continue to decline as supply becomes increasingly tight; both sides are using non-cash commitments to ensure business continuity and as a tool for capital management.

Nevil Speer

October 15, 2012

1 Min Read
Industry At A Glance: Captive Supplies

Captive supplies have been an enduring and particularly contentious issue for the beef industry over the years. However, despite the debate, it’s clear that packers and feeders are decreasingly utilizing the spot market. Weekly negotiated sales continue to decline as supply becomes increasingly tight; both sides are using non-cash commitments to ensure business continuity and as a tool for capital management.

As such, given the outlook for even more relative over-capacity in the year(s) to come, where might this weekly negotiation figure ultimately end up? Is it possible the beef industry transitions even further to a market structure that parallels the hog market? Leave your thoughts to these questions and the above chart in the comments section below.    

About the Author

Nevil Speer

Nevil Speer

Nevil Speer serves as an industry consultant and is based in Bowling Green, KY.

Nevil Speer has extensive experience and involvement with the livestock and food industry including various service and consultation projects spanning such issues as market competition, business and economic implications of agroterrorism, animal identification, assessment of price risk and market volatility on the producer segment, and usage of antibiotics in animal agriculture.
 
Dr. Speer writes about many aspects regarding agriculture and the food industry with regular contribution to BEEF and Feedstuffs.  He’s also written several influential industry white papers dealing with issues such as changing business dynamics in the beef complex, producer decision-making, and country-of-origin labeling.
 
He serves as a member of the Board of Directors for the National Institute for Animal Agriculture.
 
Dr. Speer holds both a PhD in Animal Science and a Master’s degree in Business Administration.

Contact him at [email protected].

See more from Nevil Speer
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