Group Buys Superior Livestock Auction

OMAHA (DTN) -- A deal three years in the making was completed Friday when Superior Livestock Auction Inc., was purchased by a limited partnership formed by National Livestock Credit and 31 cattlemen from several states.

Danny Jones, president of Superior Livestock Auction, told DTN the purchase would have been completed sooner, but the bankruptcy of Eastern Livestock delayed finalization.

At the time of Kentucky-based Eastern Livestock Company's bankruptcy, Superior Livestock claimed the cattle brokerage owed it $19 million. That claim has been contested in court and the bankruptcy case is still ongoing.

DTN Livestock Analyst John Harrington said this partnership purchase of Superior is good news for the cattle industry.

"The marketing of feeder cattle has been revolutionized over the last several decades thanks in large part to Superior's leadership in video and organization," Harrington said. "It's been a key player in connecting far-flung ranchers, stockers, and feedlots in ways once thought not possible. It's great to see this tradition and network gain new life and energy."

Co-founder of Superior Livestock Jim Odle will continue as general manager indefinitely and no other staffing changes are expected, Jones said. "All procedural and broadcast operations will continue as they have, Jones said.

National Livestock officials had long admired Superior's operation and sought to purchase the company when the firm that had first purchased Superior from its founders ran into some financial trouble.

"We simply wanted to see Superior continue to do what they've done and provide an opportunity to extend into the future," Jones said. "We wanted to give a solid ownership group that will cross generations."

In a news release, Jones added: "Superior's innovative marketing system provides tremendous value to both sellers and buyers, not only through access to the nationwide market, but also through efficiencies gained in reduced shipping costs, lower animal stress, and better animal health."

National Livestock Credit is part of a family of livestock service companies formed in 1932 to improve the ability of producers to market and finance livestock, according to its website. The corporate headquarters is located in the Oklahoma National Stockyards in Oklahoma City.

Superior Livestock Auction Inc. was founded in 1987 and introduced satellite video marketing to the nation's cattle industry, according to its website. Superior has grown to become the largest livestock auction in the United States, marketing well over 1 million head of cattle annually. Superior Livestock Auction Inc. has offices in Brush, Colo., and Fort Worth, Texas, with its auction facilities and Superior Productions' offices located in The Fort Worth Stockyards National Historic District.

(CZ/AG)

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