Factors that could slow the rebuilding of the US cattle herd

Published 2023년 1월 20일

Tridge summary

The US cattle industry is expected to see slow herd expansion due to factors such as increased total US animal protein in the market, high interest rates, and high feed costs, according to protein analyst Lance Zimmerman of Rabobank North America. The industry also faced a record number of cow liquidations in 2022. Producers are struggling with rising costs of production and are considering passing the additional costs onto consumers, especially with an economic slowdown potentially reducing disposable income due to inflation and higher interest rates.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

A protein analyst says herd expansion in the US cattle industry could be slow because producers are facing headwinds. Lance Zimmerman is with Rabobank North America. “We have more elevated, total US animal protein on the marketplace when we think about beef, pork and broiler meat. We have a lot higher interest rates and a lot higher feed costs.” He says the demographics of cattle producers are another challenge. “Aging agricultural producers in general and what does that transition look like over the next 10 years.” Zimmerman says the industry liquidated a record number of cows in 2022. “We also have to sit back and have a cow-calf producer that says I’m facing more volatility, I’m facing a lot higher cost of production and I’m going to need much higher ...

Source: Brownfield Ag