John Nalivka

John Nalivka is the president of Sterling Marketing, Inc., which provides economic research and market advisory services to the livestock and meat industries. He became affiliated with Sterling in 1991 as executive vice president and he has owned the company since 1994. Nalivka serves clients across the red meat supply chain from producers to end-users.

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With estimates of 82% capacity utilization of fed beef plants next year and 65% for cow slaughter plants, Nalivka says, “Rest assured - there will be decisions made.”
The foundation for consumer beef demand is not just quality, but consistent quality. Consumers want assurances the beef product they purchase today will be of the same quality as the beef they purchased last week.
Further processing of value-added products for direct sale to end-user customers in both retail and foodservice will increase over the next five years and help feed the growing global consumer demand.
As supplies of market-ready cattle have declined, so has beef packer capacity utilization.
Increasingly, U.S. and global agriculture are rapidly adopting a system driven by government regulations. Such regulatory activity should concern us all.
With a lower cattle inventory, per capita consumption will be the lowest since 2015.But while 2023 beef production will be down 6% from last year, it will still be 3 billion pounds greater than 2015.
Market economics go beyond supply and demand and other key drivers are becoming increasingly meaningful in the current market environment including adjustments to production capacity.
Sound resource management with a drive toward increased production efficiency will support production agriculture well into the future.
Oregon ranchers and feedlots are concerned about Senate Bill 85, which would stop the permitting of all “industrial sized” operations.
Several market advantages exist for building high-quality genetics into your herd, but capturing the value that has been created is a different issue.