2:45 pm - 4:15 pm
Tucson 36-39 Rooms
NCBA Cow-Calf/Stocker Council
Bill Donald, Chair; Wes Carlton, Vice Chair
Sponsored by AgriLabs
Thursday’s Cow-Calf Stocker Council meeting at the 2004 Cattle Industry Convention Jan. 29 featured a “Ranching for Profit” presentation by ranch management consultant Dave Pratt. In general, Pratt said, North American ranchers are extremely productive. However, many of their ranch businesses are not profitable, showing a negative return on assets.
According to Pratt, many unprofitable ranchers have not exited the business because their operations are subsidized through off-ranch jobs, inherited wealth, or their willingness to work for less than it would cost to replace themselves.
“Has increased production efficiency increased your profitability? Has it brought you financial security, improved the health of your land and improved your quality of life?” Pratt asked. “If not, there must be a better way of doing things.”
Pratt warned producers against spending so much time working ‘in’ the business, that they are too busy to work ‘on’ the business. He urged them to be profit-driven managers.
“There are only three ways to increase profitability,” he added. “You can reduce overhead, increase your margin or increase the number of units produced. Those are the only ways.”
Following Pratt’s presentation, the council spent the remainder of the meeting discussing country-of-origin labeling (sometimes referred to as COL or COOL). A controversial resolution from the floor called for the National Cattlemen’s Beef Association (NCBA) to pursue a workable, low-cost, mandatory system of labeling beef that was born, raised and processed in the United States.
While expressing agreement with the country-of-origin labeling concept, opponents to the measure argued that it did not address labeling of imported beef. They also said they feared it was in conflict with current NCBA policy seeking to make implementation of existing country-of-origin labeling legislation workable and beneficial to member interests. The resolution failed to pass a vote of council members.
— by Troy Smith