Agricultural News
Blach Outlines Profitability Outlook for 2015
Fri, 13 Feb 2015 13:04:06 CST
Some cattle segments will be more profitable than others in 2015. CattleFax presented their market outlook seminar at the recent Cattle Industry Convention in San Antonio, Texas. The CattleFax Crew addressed the various segments of the cattle industry and their outlook for profitability. Feedyards are likely to see some red ink this year. Margins will be a lot tighter for stocker operators. CattleFax CEO Randy Blach said cow-calf producers look to have a profitable year in 2015 and likely for a couple more years.
"I think there is huge opportunities for cow-calf producers," Blach said. "You know, 2014 and 2015 will be our peak in profitability, but if they are a well-run, well-managed operation that focuses on productivity, weaning a high percentage live calf crop, the opportunities are going to be phenomenal. We could see a five or six year run in profitability that would be unprecedented and they need it."
Radio Oklahoma Network Farm Director Ron Hays featured Blach on the Beef Buzz feature. Click or tap on the LISTEN BAR below to listen to today's Beef Buzz.
In looking back at the 1980's and 1990's, Blach said that was a difficult time for the cow-calf industry. From 1980 - 2000, he said producers were making $2 per head on average.
"That's not a sustainable business enterprise with those kind of returns," Blach said. "What we are seeing today is sustainable and I am excited about that for our producers."
Staying profitable will be determined by maximizing production and minimizing costs. Blach said in the past there was a difference in returns from $150 per head from one group to another and today that spread is even wider. Blach is also seeing highly variable cow costs of $500 a head to having annual cow production costs of over $1,000 per head. Blach emphasized the need for producers to run the numbers even during the good times.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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