The third column in a series focusing on cow-calf profitability with a focus on long-run profitability, and capacity to counteract business risk, is largely determined by correcting shortfalls on the cost side.
Some industry stakeholders believe a legislative “fix” is needed for the cattle markets. Nevil Speer argues the best “fix” is no interference, allowing cattlemen to enjoy the full benefits of a free market.
Ultimately, the beef industry is a consumer business – every dollar that flows into the industry results from a consumer spending money on a beef product.
Country-of-origin labeling for beef proved to be unproductive and ineffective in creating value for either consumers or producers, argues Nevil Speer. Worse yet it comes at a cost – government programs are never free.
Prospects for new entrants in a business are generally low if profitability requires economies of scale, large capital investment, and/or high levels of government regulation. The packing business checks all the boxes.
How do cattle producers get better? That happens with less social media and more spreadsheets; less pandering and more professionalism; less Matrix and more Moneyball.
