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Angus Productions Inc.
Copyright © 2011
Angus Productions Inc.

Blach to Cow-Calf Producers:
'The Payday Is Just Beginning'

by Kindra Gordon for Angus Productions Inc.

Back to the Angus Beef Bulletin EXTRA

DENVER (Feb. 4, 2011) — “We’re going to see some real profitability over the next several years,” Cattle-Fax’s Randy Blach told cow-calf producers in attendance during the popular Cattle-Fax Annual Outlook seminar presented during the Cattle Industry Convention Feb. 4 in Denver.


Specifically, Blach told cow-calf producers, “The payday is just beginning.” He also noted that stockers and packers have experienced good prices during the past year and he anticipates that to continue. Cattle-Fax projected that prices on all classes of cattle will be record high in 2011 and 2012.


Blach credited the favorable conditions to supply and demand, saying, “The supply side of this business remains very bullish. It’s very, very positive.”


Randy Blach

"The payday is just beginning," Randy Blach told cow-calf producers attending the organization's annual outlook seminar.

“A year ago we said if demand was steady our markets would be high," he added. "We needed exports to improve and people going to restaurants again. We’ve seen all those things happen. We had nearly a 20% improvement in exports last year and that was one of the main drivers in the market.”


Specifically, Blach noted that the uptick in demand —particularly from international consumers — has been responsible for a $100-per-head improvement in prices. Along with that, hide and offal value — again mostly via exports — added $40 to the value of cattle in 2010.


Blach did note that today’s marketplace is one that is different than the industry has ever seen — and it is very much influenced by global activity. His advice to the cattle sector was to find ways to adapt and keep up with the changes.


“Adapting to this new environment is one of the things we are all challenged with. You have to have an open mind. And, you have to think five to 10 years down the road. Volatility is here,” he stated.


What do CattleFax analysts anticipate for 2011? Here are highlights from their outlook:


Cattle Supplies

Beef Demand

Cattle and Beef Prices

Global Picture





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