Beef and Dairy Markets

Beef and Dairy Markets

David Sparks Ph.D.
David Sparks Ph.D.
Waning returns for grain, feed and livestock are in contrast to stable or improved returns for row crops, tree fruit, forest products and nursery/greenhouse businesses. Michael Stolp gives a snapshot of the beef market.

 

Beef – Cattle markets are soft, pressured by increased supply and competition from poultry and pork. The cow herd grew in 2015 and is expected to continue growing at a slower pace in 2016. Total cattle on feed in June grew 2.2 percent from the prior year. Higher beef supplies haven't translated to lower retail beef prices. Comparatively lower pork and poultry prices represent solid competition for consumers' dollars and are expected to create headwinds for cow/calf producers through year end.

 

Dairy – Dairy markets are uncertain, but recently improved. After increasing more than $2 per cwt between May and June, Class III milk prices created profit opportunities for Northwest dairy producers. Higher prices are attributed to improving domestic demand and production challenges associated with high temperatures in the Midwest and Southwest. Globally, low milk prices are slowing milk production in the European Union, New Zealand and Australia.

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