You’ve been granted free access to this subscribers only article.
Drought, feed costs influence 2013 livestock markets
NASHVILLE, Tenn. -- Drought and high feed costs could continue to restrict livestock markets in 2013 if conditions do not improve, according to Dr. David Anderson, professor and economist in Livestock and Food Products Marketing with the Texas A&M AgriLife Extension Service. According to a Jan. 14 American Farm Bureau Federation press release, Anderson addressed livestock producers from across the country during an issues conference at the American Farm Bureau Federation’s 94th annual meeting.
“Underlying everything we talk about in terms of livestock markets, everything starts with where we are with drought and pasture conditions,” Anderson said. “Where we go in terms of costs, particularly, will be based on what happens with the drought in the coming year.”
Corn prices reached up to $8 per bushel last year due to the drought. Higher feed costs led to increased production costs for cattle, pork, and poultry farmers, resulting in increased retail prices to consumers. However, Anderson projects that as more acres of corn are planted in 2013, lower prices and decent yields may bring the market back into equilibrium, provided the drought subsides.
Anderson also noted that meat prices in 2013 largely will hinge on demand. Per capita consumption of all meat in the United States has declined in the past five years, reflecting higher retail prices and a weak domestic economy.
“The key for how high those market prices can go, how much those prices recover to pay for record-high feed costs we can get, is really going to hinge on what happens to demand for those meat products in the overall economy,” he said.
While per-capita consumption of beef, pork, and poultry are down, Americans still enjoy eating meat. Other factors like a growing population, increased exports, and decreased production have affected the per-capita measurement.
“As we see reports over the next couple of years about declining meat consumption, it doesn’t have anything to do with people not liking meat,” Anderson noted. “It’s that we’re producing less, and we have booming export markets.”
Export markets will continue to be a strong outlet for livestock producers in 2013. American farmers and ranchers stand at the ready to fill increased demand from around the world as the global economy improves and dietary preferences continue to shift to include more meat.
Your Opinions and Comments
Be the first to comment on this story!
You must be logged in to post a comment.
Agriculture Today Archives
Customs intercepts pest new to the United States (May 25, 2016)
Does wounded tree have a chance? (May 25, 2016)
Livestock Market Reports (May 25, 2016)
Mother Nature whips Wilson County crops (May 25, 2016)
Scrapie confirmed in Texas (May 25, 2016)
TDA Market Recap (May 25, 2016)
Texas Hay Report (May 25, 2016)
Beef cattle seven-year decline ends (May 18, 2016)
Educational video for water well owners (May 18, 2016)
Free Beef Quality Assurance training set for May 25 (May 18, 2016)
Fretwell wins Region 8 high school all around rookie saddle (May 18, 2016)
Grant to restore, enhance the monarch butterfly habitat (May 18, 2016)
Grass-fed beef conference (May 18, 2016)
Gun safety and barbecue in New Braunfels (May 18, 2016)
La Vernia Poultry Judging wins state, advances to nationals (May 18, 2016)
Lawn, landscape, rainwater program May 21 in Floresville (May 18, 2016)
Lesser prairie chicken off the list (May 18, 2016)
Livestock Market Reports (May 18, 2016)
Luling Foundation Field Day (May 18, 2016)
Protecting your tomatoes (May 18, 2016)
TDA Market Recap (May 18, 2016)
Texas Hay Report (May 18, 2016)
As El Nińo fades, expect warmer, drier weather says Texas A&M expert (May 11, 2016)
Floresville team wins second at state (May 11, 2016)
Livestock Market Reports (May 11, 2016)
Llamas, load up! (May 11, 2016)
TDA Market Recap (May 11, 2016)
Texas Hay Report (May 11, 2016)
Transplanting mountain laurels (May 11, 2016)
2016 La Vernia Junior Livestock & Poultry Show (May 4, 2016)
Beef, forage symposium May 10 (May 4, 2016)
Cattle raisers’ crime watch (May 4, 2016)
Corn acreage increases in Texas (May 4, 2016)
Help controlling the weeds (May 4, 2016)
Krueger leads the way at La Vernia stock show (May 4, 2016)
Land Heritage nomination deadline nears (May 4, 2016)
Livestock Market Reports (May 4, 2016)
TDA Market Recap (May 4, 2016)
Texas Hay Report (May 4, 2016)
May 2016 Gardening Calendar (May 1, 2016)