Milk prices continue to be a major red flag for the dairy industry, but the opportunity for beef on dairy is one many producers have seized. If the August Ag Economists’ Monthly Monitor holds true, it means it could be well into 2024 before the U.S. cattle herd even starts to rebuild, a sign that producers could continue to cash in on beef on dairy.
The U.S. beef cow herd is now the lowest since 1962, and with the majority of ag economists now expecting rebuilding to take place until Q2 of 2024 or later, that means even higher cattle prices could be ahead. Ag economists say as the U.S. cattle herd continues to shrink due to drought and other pressures, the August Ag Economists' Monthly Monitor revealed it could also cause massive consolidation in the cattle industry, not only with cattle producers, but also meat processors.
The August survey is the third survey of the Ag Economists’ Monthly Monitor, a joint effort between the University of Missouri and Farm Journal. The first-of-its-kind survey collects insights from ag economists across the U.S. Nearly 60 economists are asked each month to provide their forecasts and views. They represent a wide geography with expertise in grains, livestock and policy.
By TYNE MORGAN
August 31, 2023
dairyherd.com
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