Animal Protein: Input Costs Temper Expansion Plans, Production Growth

Profitability for the U.S. livestock sector should improve modestly in 2024, as lower feed costs and steadfast domestic demand offset weaker global export conditions. Beef packers will continue to struggle with shrinking supplies of available cattle. Tighter cattle numbers, flat pork supplies and dampened broiler availability will be supportive to higher margins. The industry’s focus on efficiency and technology is expected to intensify in 2024, and risk management will remain paramount. U.S. animal protein will remain competitive in global markets but open access to markets remains critical.

EDITOR’S TAKE:

Tight supplies, especially beef and poultry, coupled with steady consumer demand, will drive profitability for the livestock sector in 2024. Farmers/ranchers will certainly keep a close eye out for any large increases in production costs, but barring that – it should be a good year. Plus, don’t forget, you have the perfect answer to any concerns they might have about input costs - AgPack®! Yes, that bundle of products and services that can provide up to $32,000 dollars in exclusive rebates and discounts, which could offset some significant operating costs.