Economic Drivers Influence the Hereford Breed

Jamie JohansenAg Group, Beef, Cattle, economics, Hereford

hereford-14-177-editedHereford breeders united to look at the data and production trends throughout the breed at the recent Hereford Genetic Summit. Looking at what is happening here and across the globe gives producers the insight to move the breed forward.

CattleFax CEO, Randy Blach, said the Summit is a perfect way for the breed to continually compete in the marketplace. Producers staying on top of the trends instead of chasing them is key to profitability.

“We are in a much better time where we are seeing improved moisture across our grazing land. With record prices, green grass and lower feed costs we are enjoying some profitability in the industry that has been hard to come by. It’s a good opportunity for producers to retire some debt and expand the nations cowherd and increase our output over the next couple of years.”

The United States is the number one producer of beef in the world. Randy hits on that and how we can continue to stay caught up with the international demand for our product by focusing on what we are good at. Interview with Randy Blach

hereford-14-184-editedDr. G. Kee Jim is the CEO and managing director of Feedlot Health Management Services. There he employs 25 professional consultants that work across North America, South Africa, China and Russia providing services to feedlots.

“I think the future is very bright from a profitability viewpoint. I believe the prices for feeder cattle will be very strong for many years to come. As we build the cowherd in North America the profitability will likely continue because of the global demand for beef. All looks very good on the cow/calf side. On the feedlot side, as we have excess feedlot capacity and excess packing capacity we’re going to compete very vigorously for those cattle and our profitability will be tight going forward.”

Kee says we will need to embrace technology, innovation and constantly finds ways to do more with less to stay profitable at the feedlot level. On the seedstock side he said we will need to focus on improving the cattle and the price they get for feeder animals. Management is also key to ensure a high percentage calf cropped weaned. On the Hereford side it isn’t a secret that they are often discounted at market. Kee said we must improve the cattle so Herefords are recognized for feed efficiency or create brands that drive value like Certified Hereford Beef. Interview with Dr. Kee

You can listen and view Randy and Kee’s presentations here.

Find all photos from the event here: Hereford Genetic Summit Photo Album.