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One way to offset increasing production costs and the lower prices paid by the packers is to retain ownership. One Kansas couple has found U.S. Premium Beef (USPB) ideal for achieving these and other goals. Kevin and Mary Ann Kniebel of Kniebel Farms, located in White City, Kan., retain ownership through USPB. They have a cow/calf herd consisting of 500 pairs and a feedyard which holds about 950 head. Kniebel Farms has been in the same family since 1885. They have always retained ownership and hauled fat cattle to Kansas City themselves. "The only thing that usually leaves here with our brand on it is either a cow going to slaughter or a fat steer," says Mary Ann Kniebel. "We don't sell calves." They also buy some cattle to supplement their cattle retained in the on-site feedyard. Kniebel Farms is one of the original members of USPB, which formed in 1996. "The main reason we decided to go with USPB was market access. As a small feedlot we generally had only one buyer and if they told you two weeks it was two weeks whether you thought the cattle were ready or not," she said. "You had no choice and joining U.S. Premium Beef gave us the freedom to sell cattle when we wanted too." "The premiums and the other benefits are very good, but the main reason was market access--at the top of the market and not at $2 or $3 below," Kniebel said. The Kniebels do not have a problem with the rules set up by USPB. "The main reason those rules were developed was to give the consumer what they want," she said. "It is a very consumer driven industry, and we have a direct connection to the grocery store and the consumer." She would recommend this type of partnership to other cattle producers who are marketing their cattle using the traditional system of a cash market. "At this point and time I don't know any other way they could get the most out of their cattle by getting paid what their cattle are worth," Kniebel said. "I think this grid is the most friendly to the producer." Another advantage to joining USPB is the feed back the producer gets from the alliance. They provide full carcass data, at no charge to members, to help make management decisions. Kniebel Farms uses this data to compare both bulls and cows and at this time they are still gathering information for culling purposes. "This is only the second year USPB has been killing cattle and I don't think there is enough data to start culling yet, but we are starting to see some trends and groups forming," she said. Of the cattle sent so far this year from Kniebel Farms, 95 percent have graded Choice. "We know we are doing something right, and we can now start working on the little things to improve even more." "I believe we are receiving better returns on our investment since going with U.S. Premium Beef," she said. |
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