Tuesday, January 18, 2011

The 2011 Farm season

Feed Prices: Major Factor for Livestock Profitability

Washington--Feed grain prices will be a major factor for profitability for livestock producers this year. With many analysts expecting corn prices to reach $6 per bushel, profit margins will be reduced and risk management will be critical.

Gerald Shurson, professor of swine nutrition and management at the Department of Animal Science at the University of Minnesota, said high feed prices may cut the profit of pork producers by 80 cents per slaughter pig. High feed costs could mean just a breakeven year for pork producers.

Cattle prices are high, which means cattle producers can still make money, despite higher feed costs, according to Darrell Mark, Extension livestock marketing specialist and associate professor of ag economics at the University of Nebraska-Lincoln. However, he said risk management will be critical.

Chicken prices, especially prices for breast meat, should move up to cover higher feed costs, according to Bill Roenigk, senior vice president for the National Chicken Council.

--From the Progressive Farmer

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