Economist says there is opportunity in the cattle industry
A livestock economist has a pretty bullish 10-year outlook for the cattle industry.
When Brett Stuart looks into his crystal ball he tells Brownfield he sees opportunity, and it stems from growing demand. “If I plug in the 10-year GDP forecast, it says in the next 10 years the world is going to need 8-million tons more beef,” he says. “That’s about 75% of what the US produces. We need that much more in 10 years. Now the United Nations puts out a 10-year production report that says they believe in the next 10 years we’re going to increase production 4 million tons.”
He says that lays the groundwork for higher prices. “I think that is very optimistic for the US cattle industry,” he says.
Stuart says current drought conditions make it difficult for many producers to think about expansion, but that doesn’t mean they shouldn’t consider it. “Everything cycles,” he says. “We don’t get many 3-year La Niña weather cycles. I think we’re going to have rain here one of these years. Maybe it’s next year. The odds are improving that we’re going to see better rainfall. I think those are really opportunities to expand.”
AUDIO: Brett Stuart, Global AgriTrends