Lower Breakevens Are Expected For Beef Producers

Cattle prices have been at record highs the last few years. The reason is less meat on the market. “Last year’s meat supply was 217.9 pounds per person, down 19.7 pounds from 2007 and the lowest since 1991,” said Ron Plain, University of Missouri Extension agricultural economist at the MU Spring Ag Marketing Outlook Conference. “Less meat on the market drives meat prices up. That allowed for record slaughter cattle prices.” Plain says the forecast is for slightly more meat in 2013, changing the downward trend. The key to increased meat production is going to be better weather and higher yields so there is more feed to support more animals. “The dry weather that we experienced last two years in most of the Midwest and a big chunk of the High Plains put a lot of beef cows in packing plants and has reduced the cow herd and the calf crop,” Plain said. Cow slaughter this year is well below the levels seen in 2011 and 2012, but not low enough to begin rebuilding the cow herd, he said...more