The outlook for the cattle industry continues to improve according to Anne Dunford of Gateway Livestock.

Dunford says producers have been anticipating a turnaround in the industry since cow numbers started dropping in 2005.

"It's always seemed like something hit us from the side, whether it was the recession or something else. At the end of the day, we're closing out 2010 at some very strong price levels and it looks poised to still move higher yet," she says.

The good news right now is that signs of recovery are coming from many different angles. She says it's not just a one-prong approach.

"Smaller supplies are the benchmark for driving things higher. We have lots of competition. We have more people chasing few cattle," she says. "Basis levels are adjusting between here and the US and so our relationship is strengthening. We've also had better export sales, both out of Canada and the US in 2010. All of these things help with the bottom line."

Dunford adds increased foreign market access will be key to maximizing returns for beef producers.

"The news this year on China, getting more product into Hong Kong, and Russia...I think that's a key area we need to work on. For instance, in the Chinese deal we talk about the tallow market which really has no value here in Canada,"she says, adding the hard part is not selling strips and loins, but finding value for offal products.


~ Thursday, December 16, 2010 ~