Cattle Market Prices and Profits Are Expected To Be Weaker in 2006

The United States cattle market is expected to be weaker during 2006.

Dr. Walt Prevatt, an economist with the Alabama Cooperative Extension System, identifies three reasons for the downturn.

First, Prevatt notes that there will be a larger level of beef production — perhaps as much as one billion pounds more than last year. A generous increase in beef production will weaken cattle prices.

Second, he notes that because of interest rate hikes as well as the growth in the prices of other consumer goods, there will be increased competition for the consumer’s food dollar.

Finally, cattle producers are battling rising production costs.

He says a combination of all these factors make for a weaker market for the state’s and nation’s cattle producers.

Hear what Dr. Prevatt has to say by clicking on any of the links below.

Soundbite A: Prevatt talks about the expanding beef inventory. 19 secs
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Soundbite B: He discusses the effect of interest hikes on demand. 8 secs
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Soundbite C: Prevatt explains the challenges of rising production costs. 25 secs
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Posted by mlawrenc at March 6, 2006 10:13 AM | TrackBack