Following up on Wednesday's post, some folks wonder why I am so hard on feedlots and call out so frequently and forcefully their marketing incompetence.  The answer is, because if they fail as a sector, the whole industry fails with them.  Their incompetence will, if left unchecked, eventually force the entire cattle industry into that bastion of stability, capitalism and democracy: South America.

If feedlots are successul and profitable, that creates a vacuum upstream of them which "demands" cow/calf and stocker production.  There always have been, and always will be failures in these sectors, so this "demand vacuum" could never, ever be sufficient to keep the supremely incompetent afloat (only intervention by a Marxist governement can keep failures from failing . . . like GM).  BUT, it is a sufficient vacuum to keep the crankshaft turning.

If, however, the North American feeding sector collectively fails, as it is apparently attempting to do now, the vacuum would cease, and the cow/calf and stocker sectors would necessarily implode as well.  How could the stocker and cow/calf sectors survive beyond TOKEN numbers if there were no domestic outlet or means to finish their product? 

Feedlots are a capital-intensive, labor-intensive model.  People can drift in and out of the cow/calf or stocker business without much drama.  It happens all the time.  No so with a feedlot.  If you're in, you're in, and you are committed.  If the entire feeding industry fails in a fairly narrow window of time, it won't be possible to find enough people to simultaneously step in to replace the exiting players.  What will clearly happen is a massive consolidation, followed quickly by a mass exodous from North America into South America.  This is so obvious, I just marvel at the industry's collective blindness to it.

The point is this:  the planets are aligned for a total loss of food production capability in North America within a shockingly short period of time.  We have an entire feeding sector that is the driving force of the cattle industry, that is needlessly incompetent.  We have a national industry "leadership" that is likewise utterly incompetent and is actively preaching illogical, obviously incorrect marketing methodology (and I use that term VERY loosely).  We also have an incompetent academia piling on the ineptitude.  Couple that with the rapid spread of an "environmental religion", which is more aptly termed a cult, that seeks to destroy all animal agriculture and reduce plant-based agriculture to levels of inefficiency not seen in 3000 years, AND finally, marry that to a national government that is deeply Marxist and is only too happy to enlist the environmental cult to assist in its destruction of our free, capitalist society and facilitate its own power-grab.  This could all happen within a decade, quite easily.  This confluence of events is unprecedented in human history. 

A DECADE.  The time for navel-gazing in the cattle industry has come to an end.  The time for passively waiting for "things to get better" is over, because the fact is, things are WONDERFUL - we're just too incompetent to see it!!  Profit is everywhere!  The time for finger pointing, blame-casting and lawsuits is FINISHED.  Either we get our acts together and actually learn how to run our businesses profitably, or there is going to be an implosion, the shockwaves of which will be felt all over the world.  If the United States of America can not feed itself, the United States of America is no longer free.  If the United States is no longer free, then any two-bit thug will have carte blanche to run roughshod over whomever he wants with no fear of deposement.  Like it or not, we are the world's policeman, and YOU are the ones responsible for FEEDING the police force.  

Fear mongering?  You betcha.  Grasping at straws?  Not even remotely.  Years from now, there are only two possible things people will say about me and my rhetoric.  They will either say, "She helped", or they will say "They should have listened to her".  I pray to God that it is the former, and not the latter.

I'll be teaching a Bud Williams Marketing School in Dumas, Texas next weekend.  I will be teaching feedlots how to be cosistently profitable in the cash cattle markets.  I will be teaching stocker operators how to be consistently profitable in the cash cattle markets.  I will be teaching Cow/Calf operators how to be consistently profitable in the cash cattle markets.  Click over to www.BudWilliamsMarketing.com to enroll, or tell a friend.

Forecasters are killing the North American Cattle Industry.
"Global warming" is a complete fraud designed to advance the cause of socialism and enslave humanity.
Abortion is the murder of an innocent human being and is never justified under any circumstance whatsoever.
Every human being is a question, to which the ONLY answer is Jesus Christ.

Ann Barnhardt
Barnhardt Capital Management, Inc.
www.Barnhardt.biz
888-799-4577
Ann@Barnhardt.biz

Bud Williams Marketing, Inc.
www.BudWilliamsMarketing.com
877-799-4577
Ann@BudWilliamsMarketing.com