As temperatures in College Station reached 100 degrees during Monday’s opening general session of the 61st Texas A&M Beef Cattle Short Course, it could also accurately describe a red-hot cattle market the past two years.
“These are exciting times indeed, but are they here to stay?” said Dr. Jason Cleere, conference coordinator and Texas A&M AgriLife Extension beef cattle specialist, addressing one of the highest-attended short course events ever.
Dr. Jason Cleere, Texas A&M AgriLife Extension Service beef cattle specialist and Texas A&M Beef Cattle Short Course coordinator, leads off the general session. (Texas A&M AgriLife Extension Service photo by Blair Fannin)
Dr. Jason Cleere, Texas A&M AgriLife Extension Service beef cattle specialist and Texas A&M Beef Cattle Short Course coordinator, leads off the general session. (Texas A&M AgriLife Extension Service photo by Blair Fannin)
More than 1,680 beef cattle producers gathered at Texas A&M to hear the latest about the cattle market and future trends.
“I think there is a lot to look forward to down the road,” Cleere told attendees.
Dr. Derrell Peel, Oklahoma State University livestock marketing economist, said the cattle market may have topped earlier this year, but don’t expect a downward spiral in prices anytime soon. However, Peel said to “prepare for lower prices” according to decades of past charts and data.
“It’s been fun on the way up; it’s been easy to make money on the way up,” Peel said. “There still will be some good times ahead, but you’re going to have to manage costs in relation to the market. It all goes back to cost management. Now is a good time to invest some of those good returns you’ve had to help manage costs over the next few years. That might be investing in (replacement) females or brush control. I’m still optimistic. The best cure for high prices is high prices.”
According to the latest U.S. Drought Monitor, Peel said, drought conditions have improved dramatically and beef producers “have been able to switch from defense to offense” in building back herds.
“We are on the way back to seeing expansion,” Peel said.
Dr. Derrell Peel, Oklahoma State University livestock marketing economist, discusses the cattle market during the general session of the Texas A&M Beef Cattle Short Course. (Texas A&M AgriLife Extension Service photo by Blair Fannin)
U.S. cattle inventory was up 2.5 percent as of July 1, according to the U.S. Department of Agriculture-National Agricultural Statistics Service. Beef cow numbers totaled 30.5 million July 1 as compared to 29.7 million in 2014.
Other indicators include a 6.9 percent decline in cattle slaughter so far for 2015 as well as an 11.5 percent decline in heifer slaughter.
“That’s pretty strong evidence we are expanding,” Peel said.
Dr. Rick Machen, AgriLife Extension livestock specialist, Uvalde, discussed emerging issues in the beef industry. He said the recent ban lifted on imports from Argentina and Brazil will weigh on U.S.-produced grass-fed and organic beef markets.
“It’s quite likely some of these imports could compete one-on-one with some of the products you produce here,” Machen said. He advised those who produce grass-fed and organic beef in Texas and abroad to manage costs and keep a watchful on the issue as it could affect business.
When it comes to food and beef, Millennials, those born in the 1980s or 1990s, they want to know who raised it, how it was treated, where it came from, whether it contains genetically modified organisms, the environmental impact and whether it is sustainable.
Click here to see more...