Posted April 30, 2014
Cow-calf ranchers are seeing an increase in profits and
decreasing herd numbers, according to an article by Politico available here.
“The prices are as good as I have ever seen,” says
Myron Williams, a 66-year-old South Dakota rancher who has been in the cattle business
since the late 1960s. Net returns for
cow-calf operations for 2014-2015 will “run 35 percent higher in real dollars
than the previous peak” in 2004-2005, according to projections by the
University of Missouri’s Food and Agricultural Policy Research Institute.
Recent survey data from USDA shows that “84 percent of
the beef cows in America are still in herds of 500 head or fewer.” While the industry has seen concentration, “cow-calf
ranches are the irreplaceable seed corn – and retain a level of individuality that
stands out.”
The next few years will “require a significant
retrenchment with more plants closed and high prices for American consumers.” Growing the cattle herd is, however, a slow
process, that “adds up to a fascinating but immensely intricate
supply-and-demand story about what’s really a bit of Americana.”
International trade and the growing market in Asia are
also helping to sustain higher prices for beef.
For more information on agricultural economics and
international trade, please visit the National Agricultural Law Center’s
website here.
