The CEO of CattleFax says the cattle industry is at a crossroads.
Randy Blach tells Brownfield the US cattle herd is contracting. “Prices are going up. Profitability – you’re going to squeeze margins for margin operators. You’ll finally get some additional profitability back into the hands of the cow/calf and seed stock operators, which is long overdue.”
But, he says, input prices are going up. “Two-dollar calves are breakeven. That’s how much input costs, cost of production has increased with record high hay prices, increased grazing rates, interest rates – all of these things – higher corn prices, the whole nine yards have had a major impact on our cow/calf producers.”
He says drought has been a factor.