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359: The Dirty Secret About Who Really Controls the Cattle Market… Packers Exposed
Description
On today's episode of the podcast, Lauren is joined by cattle market analyst John Campbell for one of the most eye-opening conversations yet about who really controls today's cattle market. John breaks down Alternative Marketing Agreements (AMAs), how fed cattle are priced, why negotiated cash trade continues to shrink, and what many producers don't realize about Certified Angus Beef premiums. Drawing from his own recent feedyard closeouts, he explains how plant averages, carcass grids, and packer leverage impact producer profitability. The conversation also explores why so many feedyards participate in AMAs despite the frustrations, how market concentration has changed the industry, and what could happen if cattle numbers eventually begin to rebuild.
Links
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Key Takeaways
How Alternative Marketing Agreements (AMAs) actually work
Why many producers never receive the premiums their cattle earn
The truth behind Certified Angus Beef qualifications
How plant averages determine premiums and discounts
Why negotiated cash trade has become such a small percentage of the market
How packers have gained significant leverage over fed cattle pricing
Why many feedyards feel they have no alternative but to participate in AMAs
The risks producers face if cattle supplies eventually rebuild
Why market concentration continues to be one of the biggest issues facing the cattle industry today
What producers need to understand before marketing finished cattle
Chapters
00:00 John returns to the podcast
03:10 Current fed cattle and feeder cattle market update
06:45 What is an Alternative Marketing Agreement (AMA)?
10:15 The truth about Certified Angus Beef premiums
15:45 How packers calculate premiums and discounts
21:00 Why negotiated cash trade keeps shrinking
26:30 Why producers still participate in AMAs
31:40 Could today's cattle market structure survive herd rebuilding?
37:15 Final thoughts on the future of cattle marketing
Alternative Marketing Agreements, AMA cattle, cat