We are seeing a disturbing trend in small to mid-sized feeder lots.
They are sitting empty, while the packer-owned lots are running at full capacity. R-Calf USA CEO Bill Bullard warns that it could lead to a decline in independent farm feeders.
“We have extremely high prices because of the incredibly tight supplies, and that means the feeder cattle that would be moving into feed lots are in short supply, and so those prices have skyrocketed to never-before-seen prices. However, the fat cattle market is not keeping pace with the feeder cattle markets. That means there are a lot of independent feeders out there that would like to. Fill their feed yards, but they can’t pencil out a profit, nor can they hedge their purchases.”
Bullard adds that this situation could further reduce market outlets for cow-calf and yearling operators.
Winter weather will challenge livestock producers working to rebuild their herds despite harsh conditions.
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Lucia Ruano, USMEF’s Central America representative, discusses what is driving demand for U.S. beef and pork in the region.
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Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.
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A smaller U.S. turkey flock and resurgent avian flu have tightened supplies, driving prices higher even as other key holiday foods show mixed trends.
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