With growing concern over the realities of a limited calf supply do to the aggressive culled cow rate in the past five years. Ranchers are optimistic in their economic future because of the barriers of re-entry and the inability for supply to increase in the near term.
I discussed the cow calf supply issue with Brian Perillat, Senior Analyst with CanFax at the NCBA meeting in Denver. It really does seem that reality is hitting home and the facts are there to support the age old rule of don’t break your supplier. When you have limited supply of something you eventually have to pay more for the input. That is the new reality for cattle feeders across North America. The question is whether or not the supply of the cow herd will start to increase in 2011 or is this a long term reality.
SEE MORE COVERAGE OF THE NCBA 2011 CONFERENCE
If you cannot see the below interview with Brian talking about the overall Canadian cattle market, Click Here