Strong Opportunity for Expanding Beef Operations

Strong Opportunity for Expanding Beef Operations

With slaughter numbers down, U.S. cattle producers may be taking note that now is the time to expand operations in the United States. Don Close is the vice president of food and agribusiness research for Rabo AgriFinance. Close says with profits on weaning calves in the $500 bracket, the signal’s been sent to producers.
Close: “While California still has some incredible situations to deal with, the U.S. as a whole — we have had incredible recovery in pasture and range conditions that are going to enable that follow through for expansion.”
Close has been out in the country meeting with ranchers and Rabo AgriFinance is telling them the longevity is there to sustain beef business growth
Close: “We’re sitting here with a bred cow something either side of $3,000 today. Where those prices might possibly go — who knows? Is there longevity to this growth phase to make it worthwhile for guys to re-buy cows — we believe there is and so we are encouraging the growth.”
On the global front, Close says
Close: “The Rabo analysts globally and the ones we have in China give us very strong encouragement that with the migration of the population to urban centers out of rural that is a growth market that is going to last a long time. So the bottom line is exports and global trade will become increasingly more important.”
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