Liquidating The Future
I’m Susan Allen welcome to Open Range. “We are liquidating the future. The cow herd is our factory and we’re sending it to the slaughterhouse. “ Those words spoken by a global strategist created a tsunami that could be felt from the future markets in Chicago all the way to the vast rangelands of Oregon, Washington and Idaho. Back with the story. The effects of the Texas wildfires and droughts have not only caused a nine percent decline in the state's herd according to a recent Drovers report, but have helped to create what is being called an historic decline in cattle numbers. The USDA is projecting that beef production will drop by 4.5 percent next year potentially causing a negative consumer effect as meat prices will continue to rise more than other food group. In my opinion the beef industry will need aggressive marketing to ensure it continues to have a loyal consumer base. Now I had always thought that the old "supply/ demand" economics of less beef meant more profit for our ranchers but other components wrec havoc with that theory, including high fuel costs and the rising price of feed, notably corn which has gone up 36 percent on the Chicago Board of Trade. In the end it’s difficult to believe that something that happens on a ranch in Texas can impact Northwest producers yet analysts project that the effects from the worst one year drought on record in the Southwest will be felt for years. Yes here in the Northwest, we too will fully experience ramifications of, in the words of global strategist David. C. Nelson, “ "liquidating the future of US cattle.”
