2017 was a profitable year for everyone in the United States beef industry. CattleFax CEO Randy Blach told attendees of the 2018 Cattle Industry Convention in Phoenix it is rare to see such a good year all the way through the production and processing chain.
Blach says 2018 won’t beat 2017 in terms of profitability, but it could be close despite an increase in beef production to 27.5 billion pounds. He says production will be offset by strong consumer demand and that combined with steady grain prices will help keep cattle producers in the black.
Blach says they’re predicting slightly lower cattle prices for 2018, averaging $115 per hundredweight and the markets will continue to be choppy.
There are growing supplies of protein coming to market during the year ahead, including large supplies of competing proteins, which will limit beef prices. He says the U.S. beef cow inventory increased 2.8 million head in four years, and an additional 200,000 to 400,000 head are expected to be added to the herd over the next few years.
