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Analyst says producers need to keep an eye on livestock markets

A livestock market specialist says producers need to keep a close eye on the volatility in the livestock market.  Scott Brown with the University of Missouri says, “The idea that we’re going to wait another week and prices are going to rally – that’s a sure way of keeping prices lower for a longer period of time.”

He says he can’t emphasize enough how important it is for producers to look at the cost side of equation as it relates to livestock production.

But, he tells Brownfield that doesn’t necessarily mean cutting costs.  “Cutting costs comes at an expense in terms of output,” he says.  “So you have to understand how cutting pasture and fertilizer use in pasture will result in calves that probably weigh less because I’m going to have less forage available for calves.  So you have to balance what that cut in output might look like.”

Brown says there is a fine line between reducing costs – and inputs – and also reducing revenues.