Should I Liquidate the Herd While the Cattle Market is Strong?

Jan 16, 2025

By Dr. Andrew Griffith

This week a question was asked concerning liquidating the cow herd while the cattle market is strong. This is not the first time I have received this question as several producers have certainly entertained the thought.

The answer or the correct move for an individual producer is dependent on expectations, goals, longevity in the business, and alternative land uses if the land the cattle are on is owned. One thought some should consider is that the cattle market is expected to stay high for three years. If a person can stand to stay in business for a couple of years then it may be a wise decision to capitalize on a couple or three of years of strong calf prices and slowly market a few cows without keeping any heifers as replacements. This will result in taking advantage of the market while reducing the herd size. The producer can then reevaluate the alternative in year three and determine if liquidating the herd completely is still in the best interest of all parties.

Tax implications should also be considered when making this decision.

Source : osu.edu

Video: CEOs of the Industry, A Conversation with Daniel Rivest, President & CEO, Olymel

Swine Web’s CEOs of the Industry series welcomes Daniel Rivest, President & CEO of Olymel, for a wide-ranging conversation about leadership, the future of Canadian pork, and the opportunities ahead for one of North America’s largest pork and poultry processors.

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The discussion also tackles some of the biggest issues facing Canadian pork production today, including labor availability, global competition, animal health, trade and export markets, automation, and the growing potential of artificial intelligence throughout the food production system.

Topics include:

• Daniel Rivest’s path to becoming President & CEO of Olymel

• Olymel’s current position and strategic direction

• The outlook for Canadian pork production

• Building stronger relationships with producers

• Global trade and key export markets

• Automation, innovation and artificial intelligence

• Leadership lessons and opportunities for the next generation

The conversation concludes with a Fast Five, giving viewers a more personal look at Rivest’s leadership approach and his vision for Olymel’s future.