02/22/08 Is there a profit?

With cattle prices down a bit and input costs higher than a year ago are producers able to make any money? USDA Outlook Chairman Gerry Bange says returns to farmers are being squeezed. BANGE "There is some concern in the beef area that many of these feeder cattle were so pricey that its very difficult to make money. I know that the margins that are reported by many of the processors packers have been actually on the negative side so there is concern in that industry even with the prices that we are seeing." When looking ahead Bange sees beef as the odd man out because beef output is expected to decrease this year by about a half of a percent while pork and broilers will see increases of five and three percent respectively. Overall US meat production this year is expected to increase by two and a half percent. As far as meat exports are concerned. BANGE "It looks 'very, very good. We're now estimating over 12 billion pounds for the 2008 year. That would in fact be a record number." Beef exports are expected to increase this year to 1.6 billion pounds, up from 1.4 billion last year." Voice of Idaho Agriculture Bill Scott