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Expansions in beef production continue

An ag economist says beef production is expected to increase by about four percent this year.

“That’s a combination of increased steer and heifer slaughter and also a slight uptick in cow and heifer slaughter which indicates a slight slowdown in herd expansion efforts.”

Trevor Amen with CoBank tells Brownfield relatively low energy and feed costs, and adequate moisture are favorable for cattle producers.

He says recent rallies in the cattle complex, and calf prices, suggests the beef herd will continue to expand as long as profitability is possible.  “The unpredictable side of the equation is the demand side and at the moment, both domestically and internationally, continues to exceed expectations.  That’s really the market’s chance to be supportive of prices.”

Amen says increasing global demand has been able to absorb some of the increasing beef supply and downward pressure on consumer prices has resulted in the lowest retail beef prices in the past several years.

Red meat and poultry consumption is expected increase by eight percent this year in the U.S., the largest increase in more than 40 years.

AUDIO: Interview with Trevor Amen

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