Changes in the Cattle Industry – 80

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pink flamingo herd
I talk about this picture in the podcast.

(click play above for the farm podcast)

How high do beef prices have to go to have a recovery in beef cow numbers?

Does beef then become “lobster” in price?

Is the beef cycle broken?

Normally 2013 would be the high with 2016 as the low in the beef cycle.  Cattle on Feed numbers suggest at least high prices from late fall 2013 into the first quarter of 2014.  Does an economic crash mean lower beef prices?

Are high feed prices here to stay another year or two?  Drought at the end of the 2013 growing season is making grains higher.

Where I think cattle will be fed in the future.

Cattle take a long time to expand the beef supply.  Pork and especially chicken can expand their production much quicker in the event of lower feed prices.

No cheap grass anymore.  Competition from government (CRP program) and hunting land demand mean “cheap” grass to run cattle on is not in the cards anytime soon.

Cattle expansion does not work in the midwest economic climate, but may be feasible on the plains if the weather cooperates.

Where I think cattle production is going.  Other side effects of too few cows in an area, such as too many large animal vets in an area to support them.  Cattle industry infrastructure leaving ares with low cow numbers which raises the costs for the ones left.

Agriculture is changing even in the beef industry.

 

One Comment

  1. BMR said:

    I just listened to this podcast and found it to be interesting. There were lots of ideas that wouldn’t come up on a main stream show. Looking forward to future podcasts.
    BMR in Salinas, CA

    September 11, 2013
    Reply

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