SANTA ROSA, CA – The new year may provide new headwinds for beef producers according to Matt Clark, a Senior Industry Analyst with American AgCredit.
The beef sector ended 2021 much better than the year before thanks to robust beef demand both here at home and in export markets.
Clark also explains that “the consumer’s willingness to pay for beef products improved alongside higher retail prices.”
Looking ahead, however, he sees drought conditions, feed costs, labor costs, and an increase in general input cost, tagged by rising inflation, to cause concern for the industry.
Some of these concerns, especially drought, will lead to a slight reduction in the beef cow herd over the next two years.
So, if demand can continue to grow, Clark concludes, “the decline in the beef herd may help support higher cattle prices and provide some offset to higher input prices.”
(SOURCE: All Ag News)
