If you own cattle, you should be putting a little less profit in your pocket. But, like all agricultural enterprises, when prices increase, so does production.
The opportunity in an up-year is for an association to address bigger problems or head-off unfavorable regulation.
During the 65th Annual Oklahoma Cattlemen?s Association Convention, in Norman, Oklahoma, Radio Oklahoma Ag Network Farm Director Ron Hays spoke to National Cattlemen?s Beef Association President Craig Uden, of Nebraska. When asked what business had cropped up during the association?s recent summer meeting, Uden said one issue in particular popped-up.
?Volatility continues to be a challenge for all producers, and really, all of agriculture,? Uden said. ?At the end of the day, everybody came in, worked well and presented resolutions that looked to address some of these issues.?
The National Cattlemen?s Beef Association partnered with CME Group to try and resolve the volatility issue. The working group recently reported on its efforts and hoped to add more transparency to the futures market.
Still, Uden brought up the issue of traceability, and the impacts it is having and could potentially have on the livestock industry. Uden says for now, the debate continues.
?That will continue to evolve and be discussed,? Uden said. ?There?s a lot of positive, but there are (also) a lot of challenges. People will have to view for themselves the benefits or costs associated with that.?
Uden cites a recent case of ?atypical? BSE, found in Alabama, which gained very little to no media attention due to the incident?s benign nature. Uden said the animal?s origins were traced within an hour of being discovered, and that is a testament to the system the industry already has in place.
Beyond that, Uden said his outlook for the rest of the year is very optimistic and attributes the year?s success to the impressive strength in both domestic and international markets. Uden also said herd expansion continues, while processing remains very tight. Uden contends that if the industry keeps its foot on the gas, there will be ample opportunity for the future.
