Economist Sees Opportunities to Build Herd Size, Demand and Price SimultaneouslyThu, 23 Feb 2012 16:18:14 CST
With current cattle numbers down nationwide, University of Missouri livestock economist Scott Brown sees opportunities for producers on the horizon. But, he says, producers have to be ready to make the most of those opportunities.
Brown says shrinking herds have now spurred prices enough to keep up with rising production costs. This, he says, will mean rising herd sizes in the future. This could lead to another market bubble which, depending on prudent choices, could result in producers exiting the industry or producing products capable of increasing consumer demand for beef.
Brown says the best solution, obviously, is to increase consumer demand. He sees the potential for a ten percent increase not in commodity beef, but in high quality beef. He says the potential expansion could be as high as six million head.
To take advantage of this market opportunity, Brown says producers need to get educated and not be so reliant on production techniques that were viable 20 years ago. He sees the market clearly shifting toward the production of high quality beef.
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