Regulatory activity may be the single greatest threat to U.S. food production as it impacts the entire supply chain from the producer to the consumer. It appears U.S. regulatory activity is increasing.
Analyzing profit and loss relationships across the production end of both the beef and pork supply chains is key to decisions regardless of where you sit in that supply chain.
While packing plant closure and slow-downs disrupted the beef industry in 2020, demand will become more critical heading into 2021 including consumption at-home, away-from-home, and for export.
A judge in eastern Oregon awarded $180,000 in litigation costs to animal rights groups in a wild horse lawsuit. Such management and litigation show the system has gone awry.
When a plant increases operational capacity, there is an increase in total industry capacity which in turn has economic ramifications through the cattle cycle as the inventory is expanded or liquidated.
Long term financial success for the beef industry will require fostering market approaches that are consistent with the future direction of the industry, says John Nalivka who supports a CME Beef Cutout contract.
It seems as though marketing has always been kept at an arms-length from production agriculture. Until recently, raising cattle has been well-defined just as the name says – raising cattle.
