The cattle industry needs to make some bold, creative changes to ensure its viability. That was the wakeup call from speakers at the Feeding Quality Forum, Aug. 27 to 28 in Amarillo, Texas. Persistent problems may require new approaches.
Paul Dykstra gives inside market updates for the shifting cattle prices. Research shows efficiency and marbling traits in cattle are not related and is good for cattlemen.
Imagine an alternate American history line over the past 16 years, with just an incidental supply of “Angus” beef. There’s a Certified Angus Beef ® (CAB®) brand but it began to coast in 2002 and scaled back to maintain flat demand. The 30 other Angus programs at that time struggled to compete with commodity beef; most folded.
There’s no doubt, cattle that earn the Certified Angus Beef ® (CAB®) brand or Prime grade also earn premiums. In 2017 alone, packers in a biannual survey reported paying cattle owners $75 million in grid premiums specifically for CAB.
Is this a good time to expand your cow herd, now that the U.S. beef cattle industry is deep into a fourth year of its rebuilding phase? The consensus has a short answer: no.
They say we’ve already added more than enough cows to produce the volume of beef consumers can afford to buy. Adding to your herd now only aggravates the pending oversupply and sets you up to endure several years of unprofitable calf prices.
If you’ve never eaten beef lips, you’re proof of this beef export truth: “It’s all about putting the right cut in the right market and maximizing what opportunity there is.”
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