– Garth Ruff, Beef Cattle Field Specialist, OSU Extension
From time to time, I will jump in the farm truck to go to town and pick up supplies or run some errands. Typically, I am not the primary driver of the vehicle, and the seat and mirrors are almost always set for someone of much small stature. While I must move the seat back to get in the truck, I often forget to adjust the mirrors until I am going down the road as I am more focused on where I’m going.
As we go into 2023, I think we need to check our mirrors to remember where the cattle business has been in the past couple years. While both feeder and fed cattle markets look to be rather favorable in 2023 and likely again in 2024, it is easy to loosen the reigns and become a more relaxed in providing daily Vitamin M[anagement]. Good management decisions made when cattle prices were lower are still good management decisions when the markets are more favorable.
Having wrapped up the OCA Replacement Female Sale, demand for replacement females remains strong, partly influenced by sustained strong cull cow prices and optimism in feeder calf prices looking ahead to the next marketing year.
While I am optimistic about what the next year or two can bring to the cattle industry but, we should not let a rising market be an excuse for not dialing in cost of production, efficiency, and ultimately beef quality. Also while input cost maybe slightly lower, they are still high compared to pre-pandemic.
A few thoughts as I recap the year that was 2022.
The year started with some uncertainty as the intensity of the COVID pandemic waned and we returned to a mostly familiar semblance of normal.
Drought was probably the word of the year in agriculture across certainly the western half of the country, but even in pockets close to home as well. Regional long-term drought is a double-edged sword as the have and the have-nots with regards to moisture are often in two different trajectories. This current market is fueled by a drought limited supply as record numbers of beef cows were culled in 2022.
Farmers and ranchers are resilient, and some moisture in the form of rain or snow in the West should add even more optimism to the feeder cattle markets moving forward in the near term.
There have been a number of discussions with regards to beef packing capacity in this country. Based on recent fed cattle slaughter numbers, combined with a smaller calf crop in 2023 and 2024, I think we can put those discussions to bed. A foremost concern of mine and many others going forward is labor. How can we make meat production a more labor efficient process both locally and nationally?
Ohio has invested nearly $40 million dollars into existing meat production facilities across the state to address that very question and from what I have seen in my travels, the results have been a good investment.
Stay tuned for winter Extension beef programs. We have several meetings planned as we work to meet education needs of Ohio Cattlemen. Have a Merry Christmas and Happy New Year!