Changing market trends and economic pressures present the livestock farming sector with a wide mix of opportunities and challenges. As we progress through 2024, cheques are set to bounce more warmly for beef, hog, and dairy producers, while several factors now are ripe for beef prices to extend an impact on those owning shares in the meat sector.
Rising Beef Prices
Beef producers are reaping the harvest as prices edge up with falling cattle inventories. Big cattle-producing states like Oklahoma, Kansas, and Nebraska have experienced a dry spell for quite some time now, and the trend is likely to be registered in the soon-to-be-released USDA report, which should also reduce beef cow numbers. This tightening of supplies will result in beef prices firming more, with fed cattle prices forecasted to move above $181 per hundredweight in 2024 .
Hog and Dairy Market Volatility
Prospects for hog and dairy producers are expected to result in less of a happy face. Prices of hogs as well as milk are expected to reflect weakness and throughout, show marked volatility. Hog prices are forecasted to be below $61 per hundredweight, averaging below breakeven amid high production costs. The all-milk price for 2024 is forecasted to be about $20.50 per hundredweight, an inadequate level to meet rising input prices, with financial stress among dairy farmers a potential trend through the year.
So, too, does the general economic environment. Interest rates, consumer demand, and general economic health strongly influence the domestic consumption of meat and dairy products. While beef prices are likely to remain high with limited supplies, the general economic pressures may somewhat squelch the need, making the situation complicated further by yet another element of market dynamics.
The existence of the livestock industry in this rather hostile environment harbors great prospects for beef, whereas the projections for hogs and dairy are lower. Farmers have to be kept current and adjust plans to be able to deal with the economic pressures and maximize market opportunities.