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north central Ohio | Beef is unique in that it hasn’t been able to vertically integrate like the hogs and chicken have where you have large scale ownership from the raising to the marketing of a finished product and the system is very scalable and done on extremely tight margins. Cattle on the other hand still rely in large part to cow calf producers. I have asked several cow calf producers if margins are good enough to buy land to expand there herd if current prices continue. All have said they are not that high. I do not see cattle production recovering in this country without some system that will compete with what the pork and poultry has done. How high they go I have no idea but beef consumption has gone way down in our house and would assume many others as well. Love beef but pork off the smoker is just as good and budget friendly. Think this may be a new price level/ range cattle stay in for a long time as long as the economy doesn’t take a major dive. Kinda like corn a soybeans did with biofuels in 2007/2008. | |
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How high can cattle prices go?
