Latest News From John Nalivka

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. 

Price discovery - or lack thereof - has been a topic of discussion in the cattle industry for decades.

Data from USDA's monthly cattle on feed reports and rising feeder cattle prices in July suggest cattle feeders have pen space to fill and the backlog of cattle is now diminishing.

Since the week of May 16 when the beef cutout hit record highs, the price has fallen 56%. Simultaneously, weekly beef production has increased 29% and carcass weights are averaging 37 pounds more than last year.

The U.S. beef industry is a forage-based industry and that one distinction from the pork and poultry industries will hinder any future vertical integration, says John Nalivka.