NWFCS Anticipates Mixed Results For Beef, Dairy

As we kick off our six part quarterly commodity snapshot series, we start with livestock and dairy. Bill Perry, Vice President at Northwest Farm Credit Services, said their 12-month outlook for cattle suggests variable profitability throughout the beef sector.

“Packing margins are at a record high on strong domestic demand. Cattle feeders continue to work through large inventories, specifically heavier feeder cattle. Feeders’ ability to protect pricing protect during this volatile period will determine their profitability, which appears to be break-even to a slight loss.”

Perry added the outlook for cow calf producers is break-even to slightly profitable depending primarily on the producer’s ability to price protect or market calves at or above their cost of production. When turning to dairy, Perry says their 12-month outlook anticipates unprofitable returns this year.

“The long-term effects of the coronavirus pandemic on the dairy industry are uncertain,” Perry continued. “Producer profitability will depend on risk management strategies placed before the COVID-19 outbreak.”

Join us Tuesday as we move to the tree fruits.

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