Cost of Beef Production Up 200 Percent

[M-5]

"Are you sitting down? Data show beef production is becoming expensive.

I am not referring to the end product but rather to the weaned calf. The cost per pound weaned per exposed cow has jumped 200 percent since the turn of the century. That is not good news. Cost control is critical in every business. If costs are allowed to run out of control, the next step is liquidation.

The beef business is no different. Producers need to be cautious when operating within affluent prices. Those checks coming in can be very deceiving if not appropriately matched to the checks going out."


https://www.ag.ndsu.edu/news/columns/be ... 0-percent/

 

[Nesikep]

yep, all you gotta do is look at energy and equipment prices, nevermind the increasing cost (and requirements) of labor, OSHA, and all that stuff.

 

[ChrisB]

I'm assuming land values are factored in also. If so, I'm guessing that is the biggest reason.

 

[M.Magis]

The article failed to mention any possible reasons, just numbers that without more details, mean nothing. Better accounting practices, one would assume, plays a large part. Also, it forgot to mention that the dollar value of a calf these days is probably double what it was in 2000. More money coming in obviously allows ranchers to spend more, updating equipment that's been neglected for years. The article seems to only focus on the negatives without one mention of the positives, or anything open minded. I'd expect such "reporting" from one more the liberal newspapers, but not from the beef specialist at NDSU.

 

[Nesikep]

Where we are, it is absolutely impossible to buy a ranch, lets say with 50% down, buy the cattle and machinery, and ever make money... 100 arable acre ranches with a range permit start at well over $1,000,000, and most are run down, or terribly far away from markets (40 miles of washboard dirt roads to the nearest town). You either need corporate backing of VERY deep pockets to ranch, and in which case it's all speculation that the cattle will pay operating costs and profit will come from the appreciation of the land

 

[Bigfoot]

I believe cost are up that much, if not more.

 

[TexasBred]

I believe cost are up that much, if not more.

Just off the top of my head I know feed, fertilizer, fuel, and utilities are all up at least that much. Some much more. Same for land and equipment.