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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A more productive cowherd fuels the growth of beef production which in turn reduces the need to increase cow numbers to generate that same growth.
From January through September, the U.S. exported 2.25 billion lbs. of beef, which is down 3% from a year earlier; however, the value of those exports including fresh, frozen, and chilled beef together with variety meats totaled $7.8 billion, a 5% increase over the prior year.
Informing the public about raising cattle and taking care of the resources can make the difference in their support for your business and the beef industry.
While financial well-being is a function of the market, it is also a function of the availability of grass for grazing cattle. Both define the cattle cycle. Furthermore, grazing is critical for rangeland health.
The packing industry is driven by throughput capacity and the utilization of that capacity. Packers compete for cattle to accommodate that capacity just as feedlots compete for feeder cattle.
The market took a normal seasonal downturn into September following the Labor Day weekend pushing the question of demand and the opportunity for seasonal strength in the fourth quarter to the forefront.
The packing industry is much more complicated than a plant’s slaughter capacity alone. Capacity, economies of scale, labor, and debt are all critical to financial success.
America’s beef cattle inventory continues to tighten, pushing market prices to record levels. Under normal conditions, that would lead to anticipation about building herds again. However, this cycle is anything but typical.
Food price is real. Ask any American about their budget for groceries. However, there is another part to this story that is rarely mentioned in these news stories – the cost to produce food.
Just as analysts use daily reported prices to assess markets, we also rely on the government’s reporting of the state of the economy. That’s not always helpful when trying to assess the outlook for consumer demand in the face of record high beef prices.