In many places throughout the world, there is rising beef consumption and thus, a growing demand for beef products.
What does this mean for the ranching industry?
It means that ranchers must ultimately expand their herds of cattle.
In the recent past, cattle herd numbers were on a downhill trend in the US, reduced due to the effects of severe drought and soaring cattle prices. Now, with the growing demand, this trend is projected to change course within the next couple of years. To respond to the growing demand and profit in the long term, US ranchers will have to rebuild and grow their herds.
Granted, this growth takes time, as it takes 3 years to produce a calf and bring it to its maturity for slaughter.
So, for now, while ranchers are still dealing with high cattle prices and feed prices, the numbers of cattle (currently near 1 billion) aren’t expected to fluctuate very much.
However, there’s no denying that this will change very soon as exports continue to accelerate and markets continue to grow in Eastern Asian nations and beyond.
What’s more, restrictions on beef sales due to mad-cow disease concerns have lifted, which will further facilitate the sale of beef globally.
Seeking ranch financing? Looking for an ag loan to start buying more cattle? Look into our AgAmerica farm loans. AgAmerica Lending is proud to be the only ag lending company in the Southeast authorized to offer AgAmerica ranch loans. These loan types are very attractive, boasting low interest rates and flexible payments unmatched by other agriculture loan programs. Loan types range from 5-year terms to more traditional, 25-year fully-amortized loans to revolving lines of credit to best suit your agricultural needs.
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