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In an effort to remain independent, cattle feeders are consolidating their marketing power in a new venture named Consolidated Beef Producers, Inc. (CBP). "The goal of Consolidated Beef Producers is to sell fed cattle in a way that results in true value-based, negotiated pricing," according to Paul Hitch of Guymon, Okla., chairman of the board of directors of the new venture. "Consolidated Beef Producers is the result of a January board of directors meeting of the Texas Cattle Feeders Association, where the TCFA board asked me to appoint a special committee to finalize a consolidated marketing program with TCFA serving as facilitator," said Hitch, who also serves as TCFA chairman. While TCFA has served as a facilitator in developing Consolidated Beef Producers and may contract some services, CBP will be an independent effort. "It may seem a bit unusual, but the founding directors of Consolidated Beef Producers firmly believe that to remain independent cattle feeders, we must consolidate our marketing power," Hitch said. "We asked ourselves if we were satisfied with the way we were selling cattle. We all believed we could improve." Consolidated Beef Producers is a non-profit marketing association that is open to feedyards in Texas, Oklahoma, New Mexico, Kansas and Colorado, as well as to feedyard customers. Incorporated in April, it has a nine-member board made up of Steve Denny of Wildorado, Texas; Paul Hitch of Guymon, Okla., Scott Keeling of Hereford, Texas; Virl LaMunyon of Perryton, Texas; Neal Odom of McLean Texas; Jim Schwertner of Schwertner, Texas; Bob Sims of Hereford, Texas; Leo Vermedahl of Texline, Texas; and Guy Walker of Dawn, Texas. Cattle producers can join Consolidated Beef Producers by paying a $3,000 membership fee and purchasing a minimum of 5,000 marketing rights at $1 per head. The goal, Hitch says, is to gather a minimum of 750,000 head in marketing rights before the sign-up period ends Oct. 1, 2000. Once Consolidated Beef Producers hires a general manager, negotiates marketing agreements with packers and begins marketing cattle, members will pay an annual $1-per-head service fee for each animal marketed. Marketing rights can be leased, sold or used to market cattle through CBP. |
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