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The Rural Voice, 1998-09, Page 65The future is bigger for Kansas feedlots, speaker says Feedlots continue to get fewer and bigger in Kansas, the second leading beef -producing state in the U.S., says Dr. Gerry Kuhl, Extension Feedlot Specialist in nutrition and management at Kansas State University. Speaking to 175 cattlemen from across the province at the first general meeting of the Ontario Cattle Feeders' Association in Brussels, August 19, Kuhl said managers of Kansas feedlots are also more technologically driven as they seek to match the productivity of the swine and poultry industries. While the number of feedlots handling under 2,000 head of cattle has slipped only from 95.3 per cent to 92.2 per cent of all feeders, they now produce only 3.7 per cent of the cattle. By contrast, those feedlots handling more than 16,000 head make up only two per cent of the total numbers of feeders but produce 70 per cent of the cattle marketed. Despite the fact 30,000 of Kansas's 69,000 farms are cow -calf operations, the production of calves dropped by 19 per cent from 1981 to 1996 while the number of fed cattle increased by 67 per cent from three million to five million head and the number of cattle slaughtered mushroomed by 93 per cent to seven million. It means that cattle imports to the state have increase by 79 per cent and packers have to import cattle to meet their capacity. As packers look for security of supply, many feedlot owners are tired of the time taken up in marketing and are seeking contracts or alliances with packers. In 1981 dnly 13 per cent of cattle were marketed under contract but by last year the number reached 40 per cent and in one week in early August that level was 60 per cent. Kuhl warned that although there are many alliances being struck, many will fail and probably some should. Because they are designed to News sell feed or for purposes other than the production of beef they are not good for the entire industry, he said. For feedlot managers a major focus is on cutting production costs. "Just being big doesn't necessarily translate into profitability — it just means you lose more faster." In Kansas, Kuhl said, it's been about 13 months since producers saw any black ink because of poor prices. The poultry industry improves its productivity by one per cent per year, Kuhl said. While that might not stem a large accomplishment, the cumulative effect is the poultry industry has increased its productivity by 50 per cent in 20 years, Kuhl said. The other major issue for Kansas producers, which they share in common with Ontario producers, is declining market share. Bccf's share of U.S. meat consumption has dropped from 49 per cern in 1976 to 34 per cent in 1997. During that time poultry went from just a 19 per cern market share to 34 per cent. Pork held steady at 24 per cent. "We must realize that demand for our product is slipping," Kuhl said. A consumer survey carried out by Pillsbury showed the top factors determining consumer choice in any food were consistency of taste (and in the case of bccf, tenderness) and convenience. "Tenderness is probably our achilles heel, at least in the U.S.," Kuhl said. "That's something we've got to work on." The challenge for the beef industry is to find more convenient ways for consumers to use the product, he said. "Certainly as we look at our competition they do have much more user-friendly kinds of products so its a challenge to all of us, no matter which side of the border we're on, to work on that convenience aspect of our products." Products like pre-cooked entrees need to be developed that consumers can buy, pop into a microwave and have a meal ready in five minutes. U.S. cattlemen are very interested in the idea of developing branded products where a name is given to the product and the industry stands behind it that it will meet the expectations of the consumer. "Whatever food product we're talking about, quality assurance is going to be the name of the game," Kuhl said. "It's not just a buzzword, it's here to stay. We've certainly got to take this to heart, whether it's needle marks or bacterial in nature what have you, we've certainly got to work dedicatedly as a group to recognize that every critter we put on NASHVILLE OCT. 8 - 12, 1998 City tour of Nashville, admission to Nashville On Stage and Grand Ole Opry, Country Music Hall of Fame and much more! 2 to a room $659 NO GST BRANSON NOV. 23 - 30, 1998 Bass Pro Shop Outdoor World, Baldknobbers, Showboat Branson Belle Luncheon Cruise and more! 2 to a room $1149 NO GST NOAH'S 4 -Day Christmas Tour NOV. 26 - 29, 1998 Noah performance, Living Waters Theatre, Longwood Gardens, Winterthur House and much more! 2 to a room $679 NO GST Join In On the Fun! 1-800-265-2131 ON. REG. 1694982 SEPTEMBER 1998 61