NWFCS Beef and Dairy

Idaho agriculture enters 2016 with different outlooks, according to industry analysts at Northwest Farm Credit Services. Michael Stolp, Northwest FCS Vice President – Customer Insights told me that “The economy and strong dollar overseas, carryover effects from drought and summer fires, El Niño, global production, ending stocks and import/export activity are all influencing the markets for Northwest products,” said “These external factors are impacting the profitability of Northwest producers.”

 

Beef – A prolonged period of strength and steady gains resulted in historically high cattle prices through the first half of 2015. However, market cycles pressured prices lower through yearend as the 2015 calf crop increased with rising numbers of heifers coming into calf production. Exports were also lower through the third quarter, slowed by a strong dollar. Beef and cattle prices are expected to stabilize near the long-term trend in the next three years.

 

Dairy – Headwinds facing the dairy industry include strong global production, reduced milk exports and falling cull cow prices. In international markets, European Union milk production gains and lower milk exports to China and the Middle East are pressuring markets lower. Although feed prices are also lower, milk prices are projected below most producers’ breakeven prices through the first half of 2016.