Innovation Will Be Needed for Beef Industry Growth

Cattle producers across the U.S. are heeding economic indications to rebuild and expand their herds, but a 32 million-acre decline in pasture availability over the last ten years is hindering expansion and causing producers to weigh options that require less land. That according to a new report from the Rabobank Food & Agribusiness (FAR) Research and Advisory group.
Report author and Rabobank Senior Analyst Don Close says more innovation is paramount to the growth of the U.S. cattle sector.
Close: “Well we looked at the unprecedented run in prices for all classes of cattle in 2014. Clearly the economic signal has been sent that the cow-calf sector needs to expand. With that being the case, what are the resources that are required to get that accomplished? The first one is profitability and that is taken care of. The second is availability of land. There we start to have some questions if we have the land resources in place or/and other production means needed to accomplish the goal of rebuilding cow numbers.”
Close says that in order to for that needed growth to occur, the beef industry must address main expansion constraints: high capital barriers, declining availability of grazable acres, and aging producers. In many parts of the country, incorporating systems for confined calf production is an important stop to overcoming these constraints.