Southern New Mexico Feedlot
Not Isolated; Everyone Else Is

By David Bowser

DEMING, N.M. — In an age of consolidation and corporate mergers, New Mexico Feeding Company is still what it was when it started out — a moderately sized, family-run operation.

This is one of oldest physical commercial feedyards still run by the family that founded it.

"There are a lot of farmer-feeder types that really aren't considered big commercial yards," says W.C. "Bill" Porter III. "This is one of the oldest commercial feedyards in the country still managed by the founding family."

The yard was established by Porter's father, W.C. Porter, in 1963, predating many of the big feedyards built in the Texas Panhandle in the late 1960s and early 1970s.

Originally built for 6500 head, it now has a one-time capacity of 9500 head.

"I was raised in New Mexico," Porter says. "I came here in 1963 with my father when he built this. I've been here ever since, except for a little time in college and the service."

Porter graduated from high school here in 1967, and attended New Mexico State University. Bill and his brother Asa have been running the feedyard for almost 20 years. Another brother, John, joined them in 1985.

"My dad died in 1979 in a car wreck out here," Porter says. "That's when my brother and I took it over. My mother was in it at the time. We brought a nephew on board, and I have a daughter that I'd like to think about bringing on board sometime."

Located just a few miles from the southern border of the U.S., a majority of their cattle are from Mexico. Many of their customers retain ownership of the cattle.

"The Mexican national is a pretty sophisticated feeder," Porter says. "The majority of our cattle originate out of Mexico. The majority of our customers, at times, are out of Mexico. A lot of the cattle are purchased by professional American cattle feeders and fed here."

Although most of their finished cattle in the past have been shipped north to the Texas Panhandle, this year a lot of them have gone south.

"We sell most of our cattle into the Panhandle of Texas, but we sold a large number back into Mexico this year. Both undesirable American-weight cattle and some very desirable American-weight cattle are going back into Mexico," Porter says.

The market in Mexico has been better than the U.S. market.

"Considerably better", he says. "They have a shortage of cattle. But they use a lot different animal than we use up here. They use an animal that's leaner and smaller and has fewer days on feed."

Drouth and financial problems led to a massive culling of Mexican beef herds earlier this decade, but as the country has worked through its money worries and the extended drouth seems to be ending, Mexico is taking advantage of the opportunity to rebuild its herds with good breeding stock from north of the border. They have also tapped into the technology that has been developed in the U.S. feeding industry.

"They've become very sophisticated," Porter says. "They have state of the art feedyards in Monterey and Hermosillo. They've taken a lot of our technology. They've educated a lot of their children in the United States. They have feed trucks just like ours down there. They're state of the art, but the thing is their efficiencies aren't as good as ours."

The technology is there, but the human factor is not in place yet. "Neither the desire nor the ability is in place," Porter says, "but it will be one day."

The technology has just advanced more quickly.

"What we had to struggle through for 30 or 40 years, they can come up now and buy with a checkbook," Porter says.

But Porter thinks it will be some time before the Mexican feeding industry leapfrogs ahead. What he is concerned about is the U.S. cattle industry and concentration in the meat packing sector.

While Porter questions the narrowing number of packers in the beef business, he has developed good relations with at least one major packing company.

"I know there's Monfort, National and IBP out there, but Excel has worked real, real hard to develop a good rapport with us," he says.

Much of that rapport has been because of the buyer with whom he's worked.

"There was a fat cattle buyer by the name of Gail Gardner, out of Gonzales, Texas," Porter says. "He was replaced by a guy named John Dudding from Lubbock."

When Gardner retired, Dudding took his place.

"If there were ever two class acts in the industry, it's those two gentlemen," Porter says. "They're not out to beat you up. They really make an effort to tell you, ‘here's the best way to merchandise your cattle this week with me.’"

Excel has been good about getting carcass information back to the feedyard and its customers, Porter says.

"And the USDA will give it to you," Porter says. "There's a department in the USDA that if you contact them, they will get that information back for you. Also, some of these pharmaceutical companies will get it back for you, too."

Porter says he faces two major problems with the feedyard. One is freight, but, he acknowledges, every feedyard has that problem.

"There are freight problems no matter where you go," he says. "I don't care if you go 30 miles, you got freight with livestock."

Porter says packers often help him with the freight — not always, he says, but a lot of times. Shrink here is usually figured at 3.6 percent.

The other problem is isolation in the southern part of New Mexico.

"We're not isolated," he grins. "People are isolated from us."

But, he points out, this part of the country also generally enjoys a good climate.

"Our biggest attribute is the weather," he says. "Our best attribute is hands-on management, a desire to do a good job and the ability to do a good job."

Porter credits climate and attention to detail for the feedyard's success and longevity.

"Our marketings are phenomenal," Porter says. "I can pull out countless closeouts where, on a year-around basis, we compete and do better than Kansas and the Texas Panhandle. We do as good as they do or better."

But that success has not come easily. As with most success stories, there are long hours and hard work.

"We get here at 4:30 in the morning, and we open this office for phone calls and business at 4:30 in the morning, seven days a week," Porter says. "We're here 'til five p.m., seven days a week. We always make sure that at least two partners are on deck all the time."

Porter says they use an answering machine on Sundays, although he is usually in the office or roaming the pens. He does, however, admit that he takes time for his hobbies.

"I play racquetball," he laughs. "I like to snow ski, and I sky-dived, but I quit that after three jumps."