I believe the cow-calf segment of the beef industry is at a major Turning Point. Those who are the quickest to adapt and change will be in the driver’s seat. Those who are the slowest to change will be left behind or run over.
Why do I believe the cow-calf segment of the beef industry is at a major Turning Point? I base this belief on the fact that the cost of inputs for cow-calf producers has more than doubled since 2010. MORE THAN DOUBLED in just 16 years – and they continue to increase. Do you think this trend will be reversed? Highly unlikely!
So, why is no one else talking about this? The reason no one else is talking about this is because calf prices are also at record-high levels. Calf prices have increased by a WHOPPING 250% in just the last six years! Since calf prices have increased at a much higher rate than the cost of inputs, no one is concerned. Don’t worry; be happy! Life is good!
No one knows how long these high prices will last – but we all know they won’t last forever. When calf prices fall, what will happen to the cost of inputs? The cost of inputs will most likely continue to increase. Survival for most cow-calf producers will require some significant changes in their operation.
Can you read the writing on the wall? How long are you going to wait to change what needs to be changed in your operation? Your kids and grandkids are hoping you don’t wait too long.
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