1. Cattle production: Downsizing in the wake of Shifting Consumer Interests
Business Communications group research topic
Savannah Alfaro
Eric Carranco
Sarah Phipps
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Abstract
According to the Texas State Historical Assoc. website, One out of every 7 Texans
(14%) has an agriculture related job (Texas Ag Stats). The cattle industry in Texas has
proven itself to be resilient against time up until the turn of the century, a point in time in which
consumer interests have shifted due to a number of factors that have shown drops in demand
for beef and beef by-products. Small-time cattle farmers are becoming more rare in the wake of
the fluctuating supply-and-demand cycles that are often cut short, resulting in mismanaged
animal welfare and an inferior product. New studies have emerged speaking of the rate at which
the average cow produces methane. This leads the cattle to the great global warming debate,
and if the numbers are true, buying a burger every week is statistically worse than owning a
Hummer. It’s not all bad news though. It is not impossible for small-scale ranchers to access
information pertaining to the current problems associated with their industry. Selective breeding
has created livestock that can yield significant profits at a reduced initial investment. The
environmental concerns associated with the ever-growing methane emissions from cattle
production are being faced head-on. The results have begun to show a significant reduction in
methane emission and a more cost-effective diet that cattle actually benefit from. Small-scale
production has the added benefit of being able to let cattle roam freely, which results in a
generally better cut of meat. The industry, despite recent setbacks and new concerns, continues
to find ways to adapt to the both the political and environmental climate.
Pros:
Selective Breeding
Modern cattle production is now calculated and constant. This creates the idyllic
scenario for a more uniform breed of cattle that is more resilient and profitable. The Beef Master
from San Angelo Texas is the state’s largest contribution to the industry. The breed was
established with six economic criteria in mind. Weight, conformation, milk production, fertility,
hardiness and disposition are the traits that the breed is known for, and the combination creates
an animal specially bred for domestication (Casas, Thallman, Kuehn, & Cundiff, 106). Their
docile nature sets them apart among other breeds. The animal thrives instead of endures in its
conditions. The selective breeding process involved with efficient cattle production is a modern
advancement brought forth by the discerning consumer’s demand, which is guaranteed to
bolster the already eighty-nine-million dollar a year industry.
Methane Awareness and response
In response to insuring that the cattle are best suited for their environment farmers are
now aware of the large amounts of methane the herds are producing. Livestock can produce
250 to 500 liters of methane per day (Leytem, Dungan, Bjorneberg, & Koen, 44). This, coupled
with the inefficient diets cattle are fed begin to add up as financial losses. Recent advancements
involving the reassessment in the common livestock diet focus on reducing these emissions
(Varel & Hashimoto, 29). The costs associated with the research and development of measuring
the rates at which these animals produce methane under certain diets are still varied, but the
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implications following widespread implementation of a more efficient will directly affect the global
methane inventory inversely.
Animal welfare concerns
Consumers now live in the information age, and many of them have seen the atrocities
committed by individuals abusing the cattle they raise to go to market. There is footage
revealing the less than humane practices of employees physically assaulting young calves for
no reason other than sadism (Petrinovich). Many consumers have assumed that the acts are
the part of a bigger whole that paints the entire beef industry in a bad light. In most cases those
who were caught treating the livestock inhumanely were terminated. There is a old adage
among beef producers that goes “Treat the cows well and they will take care of you.” A good
rancher will abide by this and see that the animal under their care will live a humane lifestyle.
Access to grazing fields with a combination of scheduled enclosure times provides for easy
maintenance for the animals. The ability to roam is a strong factor in wether the beef will be sub-
par or of an exquisite quality and can be marketed as “free-range” beef, a popular colloquialism
that is used by small-scale ranchers to distinguish their product. In this new age animal welfare
is a top concern among any serious cattle producer
Cons
Economic Decline
There are many Americans that can relate to a situation where their job maybe in
jeopardy due to economic difficulties. With the cattle industry being one of the largest industries
in Texas, we would find ourselves in a tight pinch if the industry completely depleted itself.
Unfortunately we have already seen some effects of the decline in this industry. Multiple
companies and local ranchers have already begun downsizing due to droughts, and cost of feed
to keep above cost (Sanburn). On top of the industry holding most of Texans employed, we also
find that the industry is keeping the state thoroughly funded as well. The cattle industry actual
produces more income for the state than the natural gas industry.
Below in Figure 1 we see the amount of money produced by the cattle industry from 1970-1995.
Even though these numbers are not recent, we are given the idea that this industry brings
billions of dollars to the state of Texas.
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With the declining production and processing of cattle we are faced with a devastating blow if
we keep seeing a drop in this industry, not only for our local rancher but also as a state as a
whole.
Environment
Texas oil and gas is in a boom, and cattle production struggling to make it, but still
holding on, Texans begin to discuss ways to improve our beautiful state. Environmentalist’s
exam the cattle industry the most due to the level of methane, and overuse of the land, this can
be debated for years and years, depending on the person you talk to. Even though many
Texans who ranch are finding that they are struggling to keep their herd, they are moving to
other outlets that dampen the hard effects of the declining cattle industry. Since 1998 Texas is
actually seeing a rise in the crop industry. Now if environmentalist wanted to get on the subject
of “harmful” effects, we could begin talking about the pesticides, herbicides and soil erosion that
constant crop production causes. The fact of the matter is we are seeing a decline in cattle
production and a rise in the crop production. Which raises the question, which one of the two
industries is really the worst considering you see a decline in one and a rise in the other?
Figure 2 refers to the increase in crop production from 1990-1999 according to the Texas
Agricultural Extension Service: Texas sees a huge increase in commodity from crops instead of
Growth in Texas Commodity Sales 1990-1999
Type Agricultural
Commodity
1990 Texas Agricultural
Cash Receipts ($000)
1999 Texas Agricultural
Cash Receipts ($000)
Percent Change
Ag Related* $829,050 $1,658,480 100%
Cotton $1,695,937 $1,417,038 -16%
Feed Crops $1,244,456 $1,601,471 29%
Food Grains $499,523 $467,257 -6%
Fruits and Nuts $98,483 $153,987 56%
Vegetable Crops $386,072 $430,866 12%
Oil Crops $232,851 $260,846 12%
Misc. Crops** $669,543 $1,255,676 88%
Beef $5,287,962 $5,291,460 0%
Milk $770,784 $799,244 4%
Sheep, Goats,
Hogs
$186,318 $257,424 38%
Poultry $773,121 $937,575 21%
*Includes: aquaculture, fishing, furs and pelts, horses, hunting, recreation, timber, Christmas
trees, and exotic animals.
**Includes: alfalfa, castors, clover seed, cowpeas, guar, nursery, sugar cane, sugar beets,
vetch seed.
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beef (Combs).
Consumer Interests
Consumers are not only worried about the future of their jobs, but also about their
weekly trip to the grocery store. Texans are seeing a huge dent in theirs BBQ plans for the
weekend when they find that the cost of beef has risen. Local grocery stores and supermarkets
are finding that with the lack in inventory, their having to mark up prices just to stay even.
Texans favorite steak restaurants are also finding that menu prices are also on the rise. An
overall increase of 2.3% over the first quarter of 2012, so what else do consumers in Texas
have to look forward to (Staples)? Unfortunately beef is still on the rise in the state.. Some
experts expect to see anywhere from a 4-5% increase in the next year (Staples). This means
that Texans like you and I will see a lack of beef in our diet for the next few months, if not for a
longer period.
Conclusion
One of the steadiest staples in Texas is the agriculture industry. It is the largest state in
the cattle industry with land and assets to match the demands of consumers nationwide. Cattle
production in Texas ranks first with 14 million cattle heads in the nation and also has the
broadest spectrum of producers and variation in production environments (Staples). The
decision to abstain from the cattle industry and its by-products is reflective of consumers
wanting complete transparency concerning the food they eat and the companies they support.
Ranchers have to consider the effects large-scale beef production contributes to the growing
methane emissions by creating a more efficient diet for the cattle. Considerations for animal
welfare have created a more resilient animal such as the Beefmaster. The drought caused the
grain and hay prices to skyrocket and cost more for beef cattle industry. If Texas agriculture
keeps declining, 14% of Texas population will be with out a job. Overall it seems that while the
agriculture sector in Texas is still growing, there are expected declines to come if you consider
shifting consumer interests. There will never not be cuts of beef available in the store, but the
aisle will have to shrink significantly and ranchers associated with the production of this product
will have to eventually down size in order to remain viable.
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References
Casas, E., Thallman, R. M., Kuehn, L. A., & Cundiff, L. V. (January 01, 2010). Postweaning growth
and carcass traits in crossbred cattle from Hereford, Angus, Brangus, Beefmaster,
Bonsmara, and Romosinuano maternal grandsires. Journal of Animal Science, 88, 1, 102-8.
Combs, S. (2013). Texas Beef Cattle Industry, 1996. Texas Beef Cattle Industry, 1996.
Retrieved from http://www.window.state.tx.us/comptrol/reports/beef/txcattle.html
Combs, S. (2001, February). Gambling with Texas Agriculture. Rural Texas In Transition.
Retrieved November 01, 2013, from http://www.window.state.tx.us/specialrpt/rural/
4agri.html
Leytem, A. B., Dungan, R. S., Bjorneberg, D. L., & Koehn, A. C. (January 01, 2011). Emissions of
ammonia, methane, carbon dioxide, and nitrous oxide from dairy cattle housing and manure
management systems. Journal of Environmental Quality, 40, 5.)
Sanburn, J. (2012, January). Business & Money. Business Money US Beef Prices Rising Thanks
to Drought in Southwest Comments. Retrieved October 29, 2013, from http://
business.time.com/2012/01/31/u-s-beef-prices-rising-thanks-to-drought-in-southwest/
Staples, T. (2012). Texas Ag Stats. Texas Ag Stats. Retrieved October 30, 2013, from http://
www.texasagriculture.gov/About/TexasAgStats.aspx
Petrinovich, L. F. (1999). Darwinian dominion: Animal welfare and human interests. Cambridge,
Mass: MIT Press, 450, 38-44.
Varel, V. H., & Hashimoto, A. G. (January 01, 1981). Effect of dietary monensin or
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Microbiology, 41, 1, 29-34.
