Cattle Industry Convention sets mood

When the weather warms, the grass greens up and all your critters have arrived safely; when you get a new tractor for feeding or a new tool to cut your workload; when you have one of those days where everything seems to go right—that’s when the feeling comes sneaking in. Call it optimism or happiness or a light-hearted spring in your step….the term doesn’t matter, last week at the Cattle Industry Convention and Trade Show you could feel it.

Higher cattle values and lower corn prices have a lot to do with it. Mike Murphy, CattleFax analyst, said when those in the beef industry look at this chart, they feel relief.

But it was about more than that. As Jolene Brown, family business consultant, told Cattlemen’s College attendees, “In ranching, we often forget to appreciate and celebrate what we have done. Take some time to enjoy it!”

And as a collective industry, we had a lot to celebrate this year.

Take the 2013 average value of beef exports, for example. It was $242 per head, up 13% over 2012. What a win! To add an exclamation point, there is potential to grow, too. Folks on the export scene are optimistic about our chances of China opening up to U.S. beef. The Chinese middle class is expected to grow from 300 million to 640 million in 6 years.

“This demand is for real in China,” Brett Stuart, CattleFax analyst, said. “Beef has become a consumer item in China.”

Domestic demand also gives us a reason to click our heels. Even though chicken consumption will increase in the U.S. during 2014, CattleFax’s Kevin Good said, “Let’s not confuse market share with demand.”

They’re buying less beef because there is less beef to buy. Americans will continue to pay more for every pound they do buy.

That brings up the often discussed price-value relationship. Consumers have very high expectations for beef, Bridgett Wasser, NCBA meat scientist, said. “They want it to taste good…every time.”

More good news? Many of you are providing that assurance. Our fiscal numbers are proof of that: The CAB acceptance rate (how many Angus-type cattle met the 10 specifications), rose to a record 24.2% last year.

It seems there was a general consensus that we have more tools and technology and more knowledge and data on consumer preference than ever before. We are in a position to expand, and we will.

I am optimistic about this next chapter in the beef business. Judging by the mood of most of the other 8,217 convention attendees, I’m not alone.

May your bottom line be filled with black ink,

Miranda

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