Press Release, For Immediate Release
Fullmer Cattle Company
New Trade Agreements Benefit Large Calf-Raising Ranch, Customers
Farmers and ranchers should see positive impact from new trade deals with Canada and Mexico, with another with China in the near future, and a local calf-raising ranch owner is observing possible outcomes but being hopeful that it helps the US dairies.
The recent United States / Mexico / Canada (USMCA) trade agreement opens new markets, including markets for dairy. If this turns positive for US Dairies then it marks a long awaited turn for the dairy market, according to Ty Fullmer, ranch manager of Fullmer Cattle Company in
Fullmer points out that cold, wet weather in the upper Midwest, coupled with lower dairy prices, makes calf-raising in those areas difficult for some dairies. "That's why they send their calves to us," he said. Fullmer's customers across six states take advantage of the drier West Kansas weather, coupled 40 years of custom calf-raising experience, to increase the growth and production rate of both their dairy and beef calves.
Better Dairy Prices Bring Benefits
Because Mexico is a large exporter of dairy products, and Canada is not far behind, passage of the USMCA will open up dairy markets even more. In addition, the newly-signed China trade agreement opens up that country, with its billions in population, to buying more agricultural products from the USA, including dairy products.
Fullmer pointed out: "When new markets open up, dairies obviously do better. When the dairies do well and get paid good prices for their milk, they can invest that money into custom calf raising with us."
Better Chance At A Healthy Start
The calf-raising expert, whose ranch specializes in giving newborn dairy and beef calves a healthier head start, gave a practical example. "Colostrum is the perfect source of nutrition for a newborn to three-day-old calf," Fullmer explained. "But powdered colostrum? That can be expensive. With more money opportunity for the dairies, they will be able to afford this type of feed for the young stock we raise for them."
"A better health start for the calf is better for the dairy," he added.
Fullmer admitted that, although his customers may benefit from both the USMCA and China trade agreements, it's not a perfect situation for his ranch. "A calf-raising company like Fullmer Cattle, that feeds primarily milk, will see a price increase in the milk they feed to young calves. Although this will be more expensive," Fullmer continued, "simultaneously, the dairies make more on their product. We can pass our increased cost to them, because they now can afford to make up that cost and still increase their profit with better milk prices."
"It's an economic cycle we see in this industry," Fullmer said.
For additional information, quotes, or photo and video resources, contact:
Laila Kammerman, Human Resources Manager,
Fullmer Cattle Company
620-384-7499 ext 109