Why was Consolidated Beef Producers (CBP) established? How will prices be negotiated?
CBP was established to maximize the return on cattle for our members by providing packers with the right cattle at the right place at the right time. Prices will be negotiated with packers on a daily basis either live, in the beef or as the base price within grids. That’s not significantly different than the way it has been; we’ll be in the market offering cattle every day and negotiating the price. And, if the packer receives an order and has immediate need for a specific type of cattle, we have the people who can search the data base of our 130 members’ yards, try to find the cattle and price them. Q: Do the majority of the cattle committed to CBP represent cattle that have typically traded in the cash market? A: My guess is yes, but the reality is that we don’t really know. Our members have the option to choose which cattle they offer us. Q: Is the cash market dead, alive or somewhere in between? If the cash market is alive and well today, do you think it will be in the future? A: I
