10-26 IAN Beef Prices

2 different takes on the beef sector from 2 very different guys with 2 very different styles of talking.

 I guess it’s fair to say that things look pretty good for producers in what some people referred to as the proteins sector of agriculture. Translation… Beef amongst other things. We all know the challenges that have confronted beef producers what with epic feed costs and the drought this year. But overall, on the profit side there will be a lot to celebrate at the 2012 Idaho Cattle Association (ICA) Annual Convention and Trade Show.  Here is Wyatt Prescott, ICA Executive Vice PresidentHigh feed costs are challenging the protein sector. He is responding to my question how are things in the beef industry?  “Things are very good.  There has been a little bit of a push down on price to some degree in the short run but I think in the long run everything is good.” Now let’s hear from Michael Stolp is VP-Market Research and Development  at NW Farm Credit Services. Feeder cattle prices are being pressured lower. However, tight domestic beef cattle supplies and steady demand support cattle markets. Most beef cattle producers will realize record profits for their calves in 2012. On the other hand, dairy producers face thin profit margins. Northwest FCS’ initial estimates reveal breakeven levels between $16.50 and $17.00 per cwt, and varying third quarter returns, ranging from $2 per cwt gains to $2 per cwt losses.