We hear about reduced inventories in beef cattle – what are the facts?
Gary Brester of the College of Ag has shared some of his research findings with Ag Live. To learn more about PBS’ Montana Ag Live program, visit their website. Submit your questions to be answered by MSU experts in future columns by emailing [email protected].
Inventories are, indeed, down in the US…increased support of crops has had some producers leaving cattle; even though cattle prices are up, a producer doesn’t see increased payoff until that cow is sold, but increased hay prices come long before that – some producers just can’t wait until day of sale; the age of producers is increasing; and technological changes haven’t helped cattle producers the way they might have helped crop producers (GPS, for example, has changed crop practices for many).
In the hog industry, structural change has almost eliminated hog cycles and cattle may be going the same route –a highly technological market has the power to change contracting practices or help establish alliances that haven’t traditionally existed.
In the US, if you compare numbers from 1999 to 2013, we have gone from about a 130 million head to just under 90 million…while Argentina has stayed at about 50 million, Australia is steady at around 30 million and Canada is about 15 million. Of that group, only the US has reduced numbers, but we are also the largest producer so that has ramifications worldwide.
Montana Ag Live Column is provided in cooperation with Montana PBS and Montana State University. To learn more, contact Dr. Gary Brester at MSU,