Posted 5/11/2022 09:06 (#9656120 - in reply to #9656048) Subject: RE: Cow calf profitability
Ft. Ripley MN
BLKCOW - 5/11/2022 08:01
I tell myself that everyday and the numbers would lead you to believe that. As has been discussed before, the fear is that by the time it is cattles turn, there won't be anything left. When people are struggling to find and buy baby formula, beef may already be a luxury item beyond the means of many. The obvious and eventual cure for hyper-inflation is demand destruction. The hay deal alone will put a lot of people out of business. I do believe cow numbers in many areas are way smaller then reported.
Kinda in the same line of thinking as you! In theory with cattle numbers we shouldn’t have a problem being profitable again this year but realistically how much more can prices go up at the store before the consumer says no to buying that burger or steak. I sure think we have to be at the point now or very soon. Had a conversation with one of the owners of the company of my day job. He said he makes good money but feels the pain is going to be coming for the general economy. Talked some more about other things and even he mentioned the price of steak makes think he won’t buy it as much.
Realistically I would be a lot better off trading the cows for a combine…. But I’m still holding out hope that cattles turn is coming. See what happens in ‘22.
One last thing though, feels like we are all playing musical chairs at the moment and the music is about to stop, just gotta make sure you have a chair to sit on