Beef Buzz News
Peel Says U.S. Was At Critical Point with Shrinking National Cowherd
Tue, 17 Feb 2015 12:37:59 CST
The U.S. has seen a drastic decline in cattle numbers, but how far can the industry go? Most ranchers were forced to reduce their herd numbers in recent years due to the severe drought that drastically effected the Southern Great Plains and to a lesser extent the Midwest. This pushed nation cattle herd to the smallest numbers in more than 60 years. Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel said the numbers had gotten so small the U.S. was at a critical tipping point.
Ron Hays Beef Buzzes with Derrell Peel of OSU
"I think so, I think we were forced to get smaller than we intended to," Peel said. "I think it probably did have some impacts on market share, if you will. Now I am not as worried about that as some folks. I think we will get market share back. Beef is very competitive on a value basis, if not on a price basis. I think we saw that this last year."
Radio Oklahoma Network Farm Director Ron Hays interviewed Peel at the recent Cattle Industry Convention in San Antonio, Texas. Click or tap on the LISTENBAR below to listen to this Beef Buzz feature.
In 2014, there were concerns how demand would play out in having record cattle prices. Peel said most of the concerns come from the fact that the industry had been to these levels before.
"The bottomline is, I think beef still has value to a strong consumer segment," Peel said. "As supplies rationed that out, those folks that really do value beef have stepped up and they are willing to pay whatever it takes. So, I think were in ok shape with that and I think we will recover market share as we rebuild supplies in this industry."
One of the reasons cattle prices were as strong as they were in 2014 was because of the strong demand from consumers domestically and internationally. Peel said every indication shows demand did strengthen in 2014.
"I think we probably undersold our demand strength to some extent in this industry," Peel said. "We probably need to give it a little more credit and be a little more assured as we go forward that the demand is there."
That's a good thing because with these high cattle prices, producers are investing a lot of dollars in expanding their beef cowherd and in retaining heifers. Peel said it's a lot of dollars and certainly there is absolutely more financial risk now. If you look at how many calves it takes to pay for a cow at today's prices, Peel said that ratio is not a lot of different than what they were when cow prices and calf prices were one-third of what they are today.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
CattleFax CEO Randy Blach Says Inflated Prices are Here to Stay Tue, 26 Oct 2021 10:22:48 CDT
Derrell Peel Says Latest Cattle on Feed Report is Slightly Friendly for the Cattle Industry Mon, 25 Oct 2021 10:03:24 CDT
Labor Shortages are the Root Cause of Stagnant Cattle Prices Says Justin Benavidez Fri, 22 Oct 2021 13:14:11 CDT
Texas AgriLife Economist Justin Benavidez Says 75% Measuring Improvement in Negotiated Trade Thu, 21 Oct 2021 10:50:53 CDT
Beef Prices Likely Will Not Rise Anymore as Consumers Deal with Inflation Wed, 20 Oct 2021 20:06:13 CDT
OSU's Derrell Peel Says Winter Wheat Pasture is Especially Valuable This Year Tue, 19 Oct 2021 10:55:09 CDT
Curbing Methane Outputs Could Be a Win for Producers and Consumers Mon, 18 Oct 2021 21:30:23 CDT
NCBA’s Kent Bacus Hopeful Biden Administration Will Pursue Deals Beneficial to US Beef Producers Fri, 15 Oct 2021 10:08:11 EDT
NCBA's Kent Bacus Talks Trade, Contrasts Biden and Trump Administrations Thu, 14 Oct 2021 20:07:24 CDT
Economist Katelyn McCullock Says Holiday Beef Prices are Expected to be High Wed, 13 Oct 2021 10:35:40 CDT
Dr. Bart Fischer Says Robust Price Discovery May Not Lead to Higher Cattle Prices Tue, 12 Oct 2021 10:48:23 CDT
More on Fall Calving Best Practices from Dr. Rosslyn Biggs Mon, 11 Oct 2021 16:31:33 CDT
NCBA's Todd Wilkinson Carries Message of Caution to Members of the House Ag Committee Fri, 08 Oct 2021 12:31:29 CDT
Cattle Producers Should Review Records Before Fall Calving Says Dr. Rosslyn Biggs Thu, 07 Oct 2021 21:15:27 CDT
Help Newly Arrived Cattle Recover Quickest by Providing High-Energy Feed Wed, 06 Oct 2021 10:09:20 CDT
Cattle Industry Waits for Third Quarter Numbers From 75% Plan Tue, 05 Oct 2021 10:25:26 CDT
Missouri Cattle Industry Leader Taking Wait-and-See Approach on Industry Price Discovery Plan Mon, 04 Oct 2021 11:29:07 CDT
Fiscal Year 2022 Kicks Off New and Proven Marketing Campaigns for Oklahoma Beef Fri, 01 Oct 2021 10:56:18 CDT
Hugh Aljoe Says Regenerative Agriculture Education Material Will Soon be Available Thu, 30 Sep 2021 09:53:16 CDT
OSU's Derrell Peel Urges Fall Stocker Operations to Review Budgets Before They Buy Fall Feeders Wed, 29 Sep 2021 19:27:47 CDT
Beef Cow Herd Liquidation Continues to Unfold Tue, 28 Sep 2021 12:47:54 CDT
Latest Cattle on Feed Report Shows Some Regions of the Country are More Current Than Others Mon, 27 Sep 2021 10:28:22 CDT
New Research Explores the Pros and Cons of Cash Cattle Markets in the U.S. Fri, 24 Sep 2021 10:16:19 CDT
New Research Shows Grid Market System Adds $700 Million in Value to U.S. Beef Thu, 23 Sep 2021 11:19:06 CDT
Don Close, VP of Rabo AgriFinance Explains How Beef Won Over the Chinese Consumer Wed, 22 Sep 2021 10:39:31 CDT
OCA's Michael Kelsey: We Need to Take a Pause on Issuing New Medical Marijuana Grower Permits Tue, 21 Sep 2021 13:19:27 CDT
NCBA's Josh White Says Beef Quality Assurance Produces Better Beef Mon, 20 Sep 2021 10:35:46 CDT
Certified Angus Beef Program is a Win for Producers, Processors and Consumers Says John Stika Fri, 17 Sep 2021 10:48:26 CDT
John Stika Believes the Pandemic Shows Consumers Want High Quality Beef Thu, 16 Sep 2021 08:07:17 CDT
Dr. Jody Wade's Advice to Cattle Producers is Stay Ahead of BRD Wed, 15 Sep 2021 13:14:02 CDT
Katelyn McCullock Sees High Hay Prices in the U.S. Tue, 14 Sep 2021 10:49:50 CDT
NCBA's Ethan Lane Believes mCOOL is Old News Mon, 13 Sep 2021 11:15:37 CDT
NCBA's Ethan Lane Heard Little New in White House Briefing on Competition Fri, 10 Sep 2021 11:45:17 CDT
Dan Halstrom Predicts 2021 Will Be a Record Year for U.S. Beef Exports Thu, 09 Sep 2021 11:15:04 CDT
Dietician Shalene McNeill Says Consumers Enthusiastic About Including Beef in Their Diet Wed, 08 Sep 2021 09:25:33 CDT