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Beef herd expansion to slow by the end of the year

A Purdue University ag economist expects beef herd expansion to slow by the end of the year.

Chris Hurt says cattle producers have little incentive to continue expansion.

“We have these uncertainties of trade and the impacts of weather in 2019 that probably keep the cattle industry, especially the brood cow sector, kind of status quo.” Hurt said.

Hurt tells Brownfield rising feed prices have limited increased cattle production.

“Higher feed prices have resulted in some reduction in weights,” Hurt said. “Our supplies of cattle this year have been only up about one percent coming to market but lower weights by about one percent have largely offset that.”

Hurt said this year’s beef trade has been down three percent. The deficit is largely from trade issues with China, but he said overall trade numbers should still reach last year’s mark.

He said the outlook for beef production will likely remain stagnant until trade and feed price uncertainties become clearer.