Preferences shift with operation size.

Industry Voice by Zoetis

December 1, 2020

4 Min Read
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Overall, auction barns continue to be the most prevalent venue for marketing stocker cattle, according to the latest BEEF National Stocker Survey (NSS), sponsored by Zoetis.

Specifically, 45% of respondents say they market 76% to 100% of their cattle through the local sale barn and 31% say they do so through a regional sale barn.

Video and internet auctions come next, with 20% saying that’s how they market 76% to 100% of their cattle; followed by direct to feedlot with no retained ownership (19%); retained ownership through a custom yard (15%); and finished at home (15%). That’s similar to the 2007 survey.

However, preference of marketing venue changes with operation size. The survey included size categories of 1-199 head, 200-499 head, 500-999 head, 1,000-2,499 head and 2,500 head or more.

By operation size, the use of local sale barns for selling 76% to 100% of the cattle declines linearly, from the smallest to the largest operations: 59% of respondents with 1-199 head market 76% to 100% of their cattle through a local sale barn, versus 18% of those with 2,500 head or more.

The same holds true for those marketing 76% to 100% of their cattle through regional markets: from 46% of respondents with 1-199 head to 9% with 2,500 head or more.

Operations with 1,000-2,499 head are as likely to market directly to a feedlot without retained ownership as they are to market via the local sale barn: 28% say they market 76% to 100% of their cattle by those means.

By contrast, 34% of operations with 2,500 head market 76% to 100% of their cattle directly to a feedlot without retained ownership versus 18% through local sale barn.

Similarly, more operations with 1,000-2,499 head (28%) and those with 2,500 head or more (22%) retain ownership in 76% to 100% of their cattle through a custom feedlot than operations of other sizes (4% to 14%).

More operations with 200-499 head (25%) use video/internet to market 76% to 100% of the cattle than operations of other sizes (14% to 19%). 

More operations with 2,500 head or more (21%) forward contract 76% to 100% of their cattle than operations of other sizes (from 3% for operations with 1-199 head to 14%).

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Getting feedlot and carcass data

Regardless of retaining ownership, 36% of respondents say they receive feedlot data for at least some of the cattle they market. It ranges from 15% saying they receive feedlot data on 76% to 100% of their cattle, to 5% saying they receive feedlot data on 26% to 50% of the cattle they market.

The percentage of those receiving no feedlot data decreases by operation size, from 82% of those with 1-199 head saying they receive no feedlot data to 27% for those with 2,500 head or more.

Operations with 200-499 head (17%), 500-999 head (17%) and 1,000-2,499 head (19%) say they get feedlot data on 76% to 100% of their cattle, regardless of retained ownership, versus 8% for those with 1-199 head and 23% for those with 2,500 head or more.

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Likewise, 31% of respondents say they receive carcass data for at least some of the cattle they market, regardless of retaining ownership. It ranges from 11% saying they receive carcass data on 1% to 25% of their cattle to 5% saying they receive feedlot data on 26% to 75% of the cattle they market; 10% receive the data on 76% to 100% of their cattle.

The percentage of those receiving no carcass data decreases by operation size, from 84% of those with 1-199 head saying their receive no feedlot data to 36% for those with 2,500 head or more. More operations with 2,500 head or more (20%) say they get carcass data on 76% to 100% of their cattle than operations with 1-199 head (6%); it’s 10% to 12% for operations of other sizes.

The percentage of respondents receiving feedlot and/or carcass data on their cattle, regardless of retained ownership, is similar between National Stocker Surveys.

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Editor’s note: BEEF completed analysis of the latest National Stocker Survey this fall. The first was done in 2007. They are the only national surveys to provide in-depth detail of stocker production, management and marketing. Both were conducted in order to gain more precise understanding of this diverse and critical industry sector.

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