Despite trade issues, the USDA is predicting record livestock production with improved trade outlook and low feed costs. Consolidation is expected to continue, especially in the dairy segment.
Source: Feedstuffs, February 20, 2020. Link.
Over the past half-century beef, pork and chicken prices have fallen by more than 50%, and output in the U.S. has more than doubled. These trends are likely to continue.”
INSIGHTS: This report is good news for animal health pros. However, consolidation and vertical integration may present ongoing challenges at the farm level. One key to continued success will involve working closely with more progressive and well-financed producers who have strategic plans. Consider asking individual producers this question, “What do you plan for this operation to look like in three years or five years?”
Also see: Licensed U.S. dairy farms declined by 3,281 last year, Dairy Herd Management, February 21, 2020. Link.