"We work every day...not just sale day!"
Thursday, July 28, 2011
Are the Drovers in the Driver's Seat ?
I've said it before and I'll say it again...Supply and demand at it's finest. Cow numbers continue to shrink, while world demand for our product continues to climb. That's great positioning for U.S. cattle producers and their allied industry partners. It certainly looks to me like the Drovers are in the driver's seat at least for the next several years. In past years, cow numbers have struggled to build back and now, due to drought in some areas are experiencing new growth pressure. Those forced to sell at least are selling on a strong market while those with ample moisture may be able to pay down some debt plus put a little jingle in the bank for their next not so rainy day. The question is, how do you get back in, if and when the rains do come, and they will. The cow factory is and will continue to be in demand and priced accordingly. It's sad, that in our business, we make it off of each other, but that's the way it is. We can't prevent drought and can only do so much to mitigate its effects but in the cattle business if we pay attention and become a student of the business we will reap rewards enough of the time to live the good life. What's more valuable than that? Too bad our lawmakers can't get their act together so we can focus on what we do best. Ever wonder how many of them have ever been forced to liquidate...for reasons other than a sex scandal.
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