For much of the past year, the cattle industry was one of the few bright spots for the ag economy. Thanks to the smallest national herd size reported in a generation, beef prices have been elevated, with no signs of dropping.
And because of that, the producer’s attitude is good, says Oregon Cattlemen’s Association Immediate Past President Matt McElligott. What consumers may not realize is that American ranchers are producing more beef, despite those low cattle numbers.
“So, the retail producer has seen a price increase, but only about an eight percent increase because the genetics, the management, how we’re handling cattle, and how we feed cattle, we’re raising more beef with fewer cattle. So that’s an environmental story that nobody’s really talking about. We’re doing more with less, which is a good thing.”
When it comes to the year ahead, there are several key issues McElligott will watch very closely, starting off with the national herd size, which is at the lowest numbers reported since the early 1950s.
“The longevity of the producer and getting young people into the business. USDA came out with a plan. They haven’t implemented it yet. We’re giving feedback on it, but a big piece of that is getting young people into the industry and how we can make it affordable for them to raise capital to get into the business. Food security is national security, and that’s a big thing.”
McElligott said beef demand remains very strong, which he doesn’t see changing anytime soon. He added that for the livestock sector to be successful, they must look to the future, adding, “We can’t look behind us.”