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. [emember_protected custom_msg=”Click here and register now to read the rest of the article!”]
In the recent past, cattle herd numbers were on a downhill trend in the U.S., reduced due to the effects of the severe drought, the monster blizzard in South Dakota 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, U.S. ranchers will have to rebuild and grow their herds. Granted, this growth takes time, as it takes three years to produce a calf and bring it to its maturity for slaughter.
Florida now has 80,000 more cows than it did just a few years ago, but this is mostly due to the drought out west, and Texas resorting to shipping cattle here. Florida can handle this growth due to its ability to hold and feed more cattle per acre than any other state. Eight of the 25 largest ranches, number-wise, in the U.S. are located in Florida.
So, for now, while ranchers are still dealing with high cattle prices and feed prices, the numbers of cattle worldwide (currently near one 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.
If you are looking for a loan to buy more cattle, give us a call at Bankers South to talk about your options.
column by LEIGH ANN WYNN
This column is sponsored by Bankers South Lending & Finance.
BIO: Leigh Ann Wynn is the director of marketing and business development for Bankers South. Adding mortgage loan originator to her title, Leigh Ann is actively working with the AgAmerica Lending Program by Bankers South, offering low interest ag loans. As an active member of the ag community and a seventh generation Floridian, Leigh Ann understands your ag needs and is here to answer your questions. She can be reached at firstname.lastname@example.org or (863) 607-9500.[/emember_protected]