As the U.S. cattle industry continues to face production challenges, a major shift is underway as producers prioritize rebuilding herds with superior genetics.
“We’re faced with adversity, but we tend to come out better than before,” said KelliRetallick-Riley, President of Angus Genetics, Inc.
According to Retallick-Riley, this pivotal moment gives producers a strategic opportunity to enhance the genetic quality of their herds and allows them to build resilient herds that support the dynamic domestic beef industry.
This trend extends far beyond the U.S. cattle industry. Herd liquidation is becoming a global movement as cattle producers worldwide embrace genetic improvements and adapt to this shared global commitment to long-term resilience.
As Global AgriTrends Founder & President Brett Stuart points out, the challenges for the global livestock industry extend beyond genetics.
Stuart shed light on the global protein space, revealing that Australian cattle and sheep have faced liquidation, resulting in a shrunk herd and dismal prices. Similarly, Brazilian cattle are expected to experience a significant slaughter decrease by 2026. In tandem, Chinese hog producers, facing disease issues and oversupply, have been consistently losing money for nearly two years.
Stuart emphasizes the critical situation in the hog market, which has seen steep financial losses for nine of the last 11 months. He predicts that the liquidation trend is likely to persist, with more losses expected over the winter months.
