United Producers to change sale barn function

By Editor | December 2, 2016 |

KAITY HOLTMAN/DAILY FORUM
Maryville’s United Producers Inc. sale barn will no longer host traditional livestock auctions at its Highway 71 location north of Maryville. The operation will now become a buying station and focus on direct sales among producers and cattle buyers. Rather than filling up with buyers attending regularly scheduled sales, this gallery will now be used by those who rent the facility for consignment, individual livestock auctions, and other events.

United Producers Inc. of Maryville hosted its final sheep and goat sale Thursday evening and has already halted all traditional cattle auctions in order to make way for an adjustment in how the operation does business.

Seeing fewer cattle coming in for regular auctions, and realizing an opportunity to provide a different kind of service, Facility Manager Logan Edenfield said UPI realizes it’s time for a change.

“We won’t host our own auctions here anymore,” Edenfield said. “We will buy cattle off the farm and sell directly to buyers. We will also continue our rail cattle program, sending on cull cows and bulls on behalf of producers, so we can do a better job of getting the farmer paid what their livestock are worth.”

UPI Senior Regional Manager Sam Roberts said that because of these changes, the company is able to offer more livestock marketing options for approximately 600 members while keeping competition in the marketplace.

“As the livestock industry continues to evolve, we realize that livestock producers are in need of customized, non-traditional, innovative marketing solutions to sustain and grow their operations,” Roberts said.

The Columbus, Ohio-based management team sent a letter to around 1,000 producers who utilize UPI’s services in mid-November notifying them of the changes.

In the letter, the management team wrote that it hopes to become a “customized livestock marketing hub,” and that the location at 22783 Highway 71 north of Maryville “will continue to serve as a holding facility to assist (producers) through tailored, individualized marketing opportunities while complementing UPI’s marketing efforts throughout the Midwest.”

Edenfield said relationships with some cattle, sheep, and goat buyers already exist, but that the operation is looking for new potential buyers.

“Most of the time we will buy directly from producers and sell directly to cattle buyers,” Edenfield said. “We also have a livestock auction in Humansville, Missouri, where we may take batches of cattle sometimes, depending on what the producers’ needs are.”

Roberts added Internet sales to the list of other platforms UPI employees will utilize.

Maryville’s sale barn joins a list of 18 collection points, though Roberts said this will not be exactly like their others. UPI also has 19 auction facilities.

“We still think northwest Missouri is an integral part of what we want to do,” Edenfield said.

According to U.S. Department of Agriculture statistics, as of Jan. 1, 2016, Nodaway County is estimated to have a total of 48,000 cattle and calves, placing it within the top 25 Missouri counties for cattle inventory.

“Our cooperative has a heritage rooted in the rich agricultural communities of northwest Missouri. As a cooperative, we do business on our members’ behalf,” Roberts said. “We believe in providing (our members) with the highest quality livestock marketing, credit, and risk management services. Given our membership here, the large amount of high quality cattle, and the geographic location with access to western feedlots, Nodaway County is a critical part of our cooperative.”

UPI will also expand its offerings in credit and risk management services, according to the formal letter.

UPI has owned and operated the sale barn since 1999, when Producers Livestock Association merged with previous owner MFA Livestock Association, producing a new parent company, United Producers Inc.

Edenfield moved to Maryville to manage the UPI livestock auction nearly two years ago when previous longtime employees John Anderson and Frank Hoepker left to purchase the Clarinda (Iowa) Livestock Auction 40 miles north of Maryville.

Lindsay Graber, director of marketing and communications for the Kansas City-based Livestock Marketing Association, said while some livestock auction markets are becoming collection points or buying stations, there appears to be an increase in the number of producers selling livestock using auction markets.

“We know producers are still using auction markets as a means of selling their livestock,” Graber said. “In fact, the Cattlemen’s Beef Board recently did a producer survey that shows 80 percent of producers utilize a livestock auction every year.”

She also noted an increase in association membership and growth in new livestock auction markets across the country.

Changing services means that some UPI staff changes will occur, including downsizing of nonessential staff and a shifting of roles.

Additionally, UPI will still rent its facility to other entities, including breeders who host their own auctions.

Randy and Kay Owens, who recently started their own business, Owens Consignment Auction, will host their first sale at the sale barn Dec. 10, and plan to continue to hold monthly sales.

The Owenses said they have identified a need for consignment auctions in Maryville and surrounding communities that will allow sellers to offer merchandise to the highest bidder.

The couple is launching the business with assistance from Northwest Missouri Enterprise Facilitation.

The idea is to give people an outlet to sell unwanted or surplus items and earn extra cash. Interested sellers should call 660-582-2099 or 660-853-1450.

Consignment auctions, individual auctions, and other events are among the activities Edenfield envisions for the UPI facility going forward.

Producers with questions or seeking more information can call Edenfield at 660-254-2250 or the facility itself at 660-562-2026.