By Andi Anderson
The US beef industry has hit a 60-year low in cow numbers a result partly attributed to enhanced efficiency. While comparing to past decades might be misleading due to increased productivity, the recent decline remains significant. In 2023, the cowherd size was marginally smaller than the fondly remembered 2014 figures, a year that triggered expansion until 2019, followed by a steady decline.
Factors like COVID-related backlogs in 2020, drought-induced female slaughter in 2022, and escalating input costs and interest rates have impacted the industry. This has led to a decrease in beef production in 2023, the first in eight years, and forecasts suggest a continual decline in inventories, affecting the 2024 calf crop and feeder cattle supply.
Expectations indicate a lack of increase in beef cow numbers until at least 2025, presenting a window for strong calf prices. While expansion might not be viable for all, investments in facilities, genetics, and financial strategies can optimize opportunities. Each operation must adopt a long-term approach, considering diverse paths in capitalizing on a robust calf market.
The evolving scenario prompts a strategic outlook for cow-calf operators, emphasizing varied approaches for sustainable growth and success in a changing market landscape.
Photo Credit: istock-123ducu
Categories: Ohio, Livestock, Beef Cattle