01/03/08 WSU economist sees limited price growth for beef

Washington Ag January 3, 2008 Dairy producers have seen higher prices this past year help to offset the increased input costs they are paying. Shannon Neibergs with the School of Economics at Washington State University says that has not been the case for the beef industry. Neibergs says the cattle industry has still not fully recovered from the restrictions in export markets attributable to BSE. Neibergs: "As a result beef prices are not very strong and there is a lot of beef and pork and chicken, protein supplies coming into the market that is going to limit any price growth. So with exports slow to increase, a large supply, it is not as optimistic for the beef prices across from the cow-calf producer to the feedlot producer to the packer." Neibergs says it is hard to say if individual operations will be profitable in 2008. Neibergs: "With the input costs increasing, prices remaining level, it is going to be challenging to remain profitable and improve your profitability." Neibergs says that will have to be done through increased operating efficiency. I'm Bob Hoff.