Hitch Optimistic About Feeding
Industry As He Takes TCFA Reins

By David Bowser

SAN ANTONIO — An Oklahoma cattle feeder was upbeat as he took the reins of the Texas Cattle Feeders Association this month.

"I think we've got good times ahead of us," says Paul Hitch, new chairman of the Texas Cattle Feeders Association and head of Hitch Enterprises in Guymon, Okla.

He says his first priority as incoming chairman of the cattle feeding organization will be continued work on the consolidated marketing program the organization has debated over the past two decades, a project brought back to the forefront by outgoing association chairman Jim Schwertner.

"I think the first order of business is to try and put together the consolidated marketing program that Jim Schwertner and some other people have devoted a great deal of time to," Hitch says. "It's gotten quite a lot of enthusiasm on the part of the cattle sellers. It's a different method of merchandising cattle than we've followed in the past. I think it should be advantageous, not only to the seller, but to the packer and the ultimate consumer. I think that's the first order of business, to try and get that baby born."

Hitch says he thinks alliances and cooperatives will continue to grow in importance in the livestock industry.

"I certainly know that it's going to change dramatically in the next four or five years," he says. "The alliances are one change. Some people are already participating in those. There's a number of alliances, none of which is very large at the present time. We've got about four times as many cattle in our consolidated marketing program to date as the biggest alliance."

He says the new marketing effort still lacks the commitment of more cattle.

"We don't have quite enough to make it successful," he says, "but people are continuing to sign up."

Hitch says that over the next four to five years, he expects to see the producer, packer and retailer fall into line and join forces.

"The question is where is the power going to be located?" he asks. "Is there going to be one driver or are we going to have kind of a cooperation amongst equals? Cooperation amongst equals is the scheme I'd like to promote."

He adds that the idea of independent buyers and independent sellers butting heads is a terribly inefficient way to sell any product, including beef.

"We have to get a better system going, and we're going to do it," he insists.

The change is consumer-driven, Hitch says, and it's the only way the consumer is going to get what he wants.

"From my standpoint, it's being driven by producers of beef, but we've got to get together and produce a product that somebody wants to buy," he says. "Ultimately, the money spent at the retail counter or the money spent at the restaurant is the only money that we have."

Hitch says cattlemen have to deliver a better product, and that product has got to be produced more efficiently.

He also expects live cattle prices to be strong over the next year.

"I certainly think we can get it back above $70 in the next year," Hitch says. "I think we're going to trade between $65 and $75."

He says there has been amazing strength in the cattle market and amazing strength in beef demand.

"People are spending more money and buying more pounds of beef, so there's an increase in demand," he says. "There's some exciting new products out there."