Beef Buzz News
CattleFax CEO Says 2014 "Perfect Storm" for Cattle Producers
Tue, 10 Feb 2015 12:16:46 CST
This past year will go down in history as one of the best years for cattle producers. At the recent Cattle Industry Convention in San Antonio, Texas, CattleFax Chief Executive Officer Randy Blach talked about the historic nature of 2014 for the beef cattle industry and for most of animal agriculture. He called it a "perfect storm".
Ron Hays Beef Buzzes with Randy Blach, CEO of CattleFax
"You just don't the stars line up like that," Blach said. "Everything happened, there wasn't enough protein domestically or globally and then when it started to rain, feed prices continued to softened and we saw increased expansion activity that really slowed down the number of animals being harvested. It really put things into motion, so we won't see another one like that for quite some time, but it was sure fun to see one."
Radio Oklahoma Network Farm Director Ron Hays featured Blach on the Beef Buzz feature. Click or tap on the LISTEN BAR below to listen to today's Beef Buzz.
One of the great things about 2014 was the profitability that most of animal-agriculture enjoyed.
"Anybody in the protein business had an incredible year, it didn't matter if it was dairy or if it was pork or poultry or all of the segments of the beef cattle industry, they all had wonderful years," Blach said. "Most of these producers down here this week at this convention have spent a lifetime in this industry and you just won't repeat one of this magnitude, so it was great to see."
In looking back at the profitability and record high prices, Blach said a year ago his basic message at the Cattle Industry Convention was that the beef industry needs to this economic signal and expand the nation's cowherd and American producers have done that.
Since the end of 2014 into the beginning of 2015, calf, yearling and fat cattle prices have been quite volatile. CattleFax is predicting higher prices for the year, but not without volatility. In looking back at the last 18 months, Blach said prices went up 45 percent from June 2013 to December of 2014. Blach said in 2015 the markets will be more sensitive and more volatile throughout the year. He recommends producers watch the trading ranges of prices.
"The ranges are going to be incredibly wide, we could see fed cattle trading a $30 range this year," Blach said. "We could see feeder cattle trading a $45 range. The average doesn't mean as much, does it. It doesn't mean as much because nobody ends up selling anything on the averages."
For 2015, Blach said the key is to manage that volatility and manage the risk.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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