💵 The High Cost of Production

Supply Squeeze, Traceability Truths and Fall Forecast from Ranching.com by CattleMax

September 18, 2024

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NEWS

💵 The High Cost of Production

💵 The High Cost of Production - Food prices have risen sharply, but the cost of production has also increased significantly. From 2019 to 2023, production costs rose 28%, with energy up 35% and labor 24%. Interest rates on operating capital have jumped 25%, adding to the financial strain on farmers and ranchers. While consumers face higher grocery bills, it's important to recognize that producers are also struggling with escalating costs to bring food to market.

🥩 Supply Squeeze - Beef production and cattle slaughter are down, leading to lower global beef supplies. Despite a 2.9% drop in U.S. beef exports, export values have risen 6% due to higher prices. Beef imports have increased 20% in volume and 17% in value, reflecting strong domestic demand. Record-high wholesale and retail beef prices indicate robust consumer demand, although future beef trade may be influenced by economic factors like currency fluctuations and consumer debt.

🌿 A Noble Update on Grazing Insights - The 3M project, a $19 million initiative led by Noble Research Institute and partners, is advancing its research on grazing management's effects on ecosystems and producer well-being. By late 2023, the project had expanded data collection across 60 sites, installed new flux towers, and gathered extensive soil samples. Initial findings show early impacts of grazing on ecosystems and high producer well-being. The project aims to provide tools for better soil health assessment and land management.

⚕️ Immunity Support for Starter Cattle - Calves arriving at feedlots face immune challenges due to stress from diet changes and handling. To boost their health, it's vital to minimize stress, provide a comfortable environment, and ensure proper nutrition. Postbiotic supplements can enhance immune function and reduce disease, leading to better overall health and productivity in calves.

🇲🇽 Beefing Up Trade - The U.S.-Mexico cattle trade has evolved from using cattle as currency in the 19th century to a complex exchange today. Mexico has long been a key supplier of feeder cattle to the U.S., exporting about 1.15 million head annually. Over time, Mexico has also become a major beef exporter, often ranking high among U.S. beef import sources. Recent trends show increased U.S. beef exports to Mexico and fluctuating import levels from Mexico, reflecting changes in trade dynamics and economic conditions.

📝 Traceability Truths - Ranching relies on hard work and tradition, but animal disease outbreaks pose a significant threat. To safeguard this way of life, the USDA's new traceability rule, starting November 5, will require electronic tags for specific cattle, enhancing disease tracking. While some concerns about privacy exist, the rule won't track financials or impose additional taxes. The Texas & Southwestern Cattle Raisers Association supports using third-party groups like U.S. CattleTrace for data management, emphasizing the need for effective solutions to protect the industry.

🥵 Fall Forecast - This fall, much of the U.S. is expected to experience hotter and drier conditions, according to NOAA’s Climate Prediction Center. From September to November 2024, warmer-than-normal temperatures are likely, especially in New England and parts of the Southwest, with probabilities exceeding 60%. La Niña, which typically brings dry, warm conditions to the southern U.S., is anticipated to develop with a 66% chance and may persist through winter. As La Niña strengthens, the U.S. may face extended warmth and dryness in many areas already experiencing heat.

RANCHING KNOW-HOW

How to Read a Vaccine Label

Vaccinating cattle effectively requires careful attention to vaccine labels, which detail crucial information like dosage, administration route, and expiry date. Lauren Carde from the Canadian Animal Health Institute highlights the need for producers to read labels thoroughly to avoid mistakes. Dr. Catherine Filejski and Dr. Robert Tremblay stress that misreading labels can lead to dosing errors and improper mixing. Consulting with a veterinarian to develop a tailored vaccination schedule is crucial to ensure proper immune response and avoid over-vaccination.

The Best Way to Treat Pasture Cattle

In a BCI Cattle Chat podcast, Kansas State veterinarians discussed treating cattle in the pasture, considering darting, roping, trailering, walking, or doing nothing. Experts Brian Lubbers and Bob Larson preferred trailering or walking the animal to a facility, with roping as a viable option if feasible. Darting was dismissed due to concerns about effectiveness and safety. The best method depends on the specific issue and situation.

RANCHING AROUND THE WORLD RECAP
CATTLE COMMUNITY
QUOTE OF THE WEEK
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"The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack in will."

Vince Lombardi

READER POLL
LAST WEEK’S RESULTS

How prepared do you feel to manage an outbreak of disease, like anthrax, at your operation?

19.2%: Very Prepared

46.2%: Somewhat Prepared

34.6%: Not Prepared