News Update
December 27, 2013
Rabobank Beef Quarterly Q4: High Global Prices to Continue as Supply Remains Tight
The Rabobank Global Cattle Price Index has risen by 6% since June, driven by lower-than-expected beef supply in the main exporting countries and strong Asian demand, according to a new report from the Rabobank Food & Agribusiness (FAR) Research and Advisory group.
According to the report, supply will remain tight, especially in the first half of 2014 (1H), driven by lower feed costs, induced herd rebuilding in the United States and the strong export demand from Brazil and Argentina, which will continue to support strong prices. In 2014, Rabobank forecasts continued high prices while global beef supply is expected to rise only slightly. Meanwhile, China’s demand for imports are expected to increase. The recent announcements to (re-)open import markets will benefit beef trade going forward.
Rabobank analyst Albert Vernooij says, “The Rabobank Global Cattle Price Index improved further in H2 2013, supported by both continuing strong Chinese import growth and lower-than-expected supply in the main export markets making cattle prices mainly positive.”
The market has been unable to reach its full potential due to consumers’ resistance against high prices in the United States and the European Union, still two of the main beef markets. In addition, exchange-rate movements have impacted the competitive position of exporters, resulting in Brazilian and Argentine beef becoming increasingly attractive and leading to a surge in exports.
For 1H 2014, Rabobank expects further upside for the global beef market, with cattle prices remaining elevated in most regions. The main question in many regions remains where to source sufficient beef supplies. With herd rebuilding as the first priority globally, supported by improving climate conditions and moderating feed costs, global beef production will increase only slightly and is expected to decline sharply in key markets like the United States. The main demand wildcard will be consumer resistance to high beef prices and the growing availability of competing animal proteins due to the improved margin outlook as feed prices tumble.
“China’s importance and influence on the global beef market is set to continue to increase in 2014,” commented Vernooij. “China’s imports of both frozen and chilled beef are expected to grow further, driven by the shortage of beef in the domestic market, reflected in record high retail prices. We believe that the value of the Chinese markets will grow in excess of 10% annually over the next three years.”
A number of recently announced trade deals will also come to bear in the beef market over the coming months and years, including commitments to reopen closed or impeded markets for beef imports and the Trans-Pacific Partnership, which set goals to improve trade between five beef-exporting countries. The removal of trade barriers will be positive for global beef trade and, combined with lower feed costs, should support renewed investment in the global beef industry.
Topics of Interest to Producers Offered at Multistate Beef Conference Jan. 14
The 3-State Beef Conference will be Tuesday, Jan. 14 at Southwestern Community College in Creston, Iowa. Chris Clark, beef program specialist with Iowa State University (ISU) Extension and Outreach, said the conference agenda has information for cow-calf, stocker and feedlot operations.
“The topics and speakers will provide timely information on relevant topics, and all were chosen based on producer input,” Clark said. “This year, Extension specialists from all three states — Iowa, Missouri and Nebraska — will present information in person at the Iowa location.”
Rob Kallenbach from the University of Missouri (MU) will provide information on the potential benefits of using cover crops as an alternative forage source in a grazing system. Tim Eggers from Iowa State will present information on the decision process of moving pasture land to crop production, as well as helping participants think through challenges of deciding whether to lease pasture land or keep cow-calf pairs in drylot for longer times. Rick Rasby from the University of Nebraska–Lincoln (UNL) will discuss drylot management of cows with emphasis on financial, nutritional and practical considerations.
The program at the Southwestern Iowa Community College campus in Creston begins with 5:30 p.m. registration, with the first session beginning at 6 p.m.; dinner and two more presentations follow. Cost is $20 per person and includes the meal and a copy of the conference proceedings. Preregistration is required by Friday, Jan. 10, by calling the Page County Extension Office at 877-596-7243.
The conference brochure has information for the Iowa location. Program details, contacts and links to brochures for all locations are available on the conference website at www.extension.iastate.edu/feci/3stbeef/.
The conference also will be hosted at the Hundley Whaley Learning Discovery Center, Albany, Mo., Jan. 15; the Agricultural Research and Development Center, Ithaca, Neb., Jan. 16; and the Gage County Extension Office, Beatrice, Neb., Jan. 16.
Central Texas Cow-Calf Clinic Scheduled Jan. 3 in Milano
A beef cattle market outlook for 2014 will be one of the featured presentations at the Central Texas Cow-Calf Clinic scheduled Jan. 3 at the Milano Livestock Exchange.
Cost is $20 and includes snacks and a barbecue lunch. Onsite registration begins at 8 a.m., with the program beginning at 9 a.m. The clinic will conclude at 3 p.m.
“This annual five-hour educational clinic has focused on helping beef producers solve the issues and challenges that we face as cattle producers,” said Jon Gersbach, Texas A&M AgriLife Extension Service agent for Milam County. “This year’s program will contain six presentations that should benefit all producers in the area.”
Gersbach said David Anderson, AgriLife Extension livestock economist, College Station, will provide a cattle market outlook.
“Dr. Larry Redmon, AgriLife Extension state forage specialist in College Station, will present forage production and protection and ways that we can assess and properly manage our pastures,” Gersbach said. “In addition, we will have a presentation from the Texas Department of Agriculture on pesticide application laws and regulations.”
A fencing demonstration by San Antonio Steel representative Gary Craig will feature discussions on the differences in post and wire, as well as some tips on proper fence construction, Gersbach said.
“The day will close out with Tiffany Dowell, AgriLife Extension law specialist in College Station, who will discuss pasture leasing and how to construct a lease. This topic will be helpful whether you are a producer or a landowner looking to lease land.”
For more information, please view the Angus Journal’s Virtual Library calendar of upcoming events here.
MSU Extension Offers Online Programs for Beginning Farmers
A growing number of new farms are appearing across the state of Michigan. Many people starting these farm businesses, or considering it, are new to farming. Others have experience, but are getting started with a new agricultural enterprise. Either way, the 2014 MSU Extension Beginning Farmer Webinar Series will provide convenient, online learning opportunities in a variety of topics for the beginner.
The series kicks off with a set of weekly webinars running from Jan. 20 through early April. Each program begins at 7 p.m. Eastern Time and will last 1-2 hours. Each webinar is a separate program with registration available at http://msue.anr.msu.edu/ as the webinar date draws nearer. Click the events button at the top of the site and scroll through the programs listed by date to find the webinar programs you are interested in. A $10 fee is charged for each program, and a high-speed Internet connection is required. You will receive the URL for each program when you register.
Editor’s Note: The articles used within this site represent a mixture of copyrights. If you would like to reprint or repost an article, you must first request permission of Angus Productions Inc. (API) by contacting the editor at 816-383-5200; 3201 Frederick Ave., Saint Joseph, MO 64506. API claims copyright to this web site as presented. We welcome educational venues and cattlemen to link to this site as a service to their audience.