STILLWATER — Without question, the drought is affecting numerous agricultural markets.
But to look at one in particular, Oklahoma State University Extension Livestock Market Economist, Dr. Derrell Peel recently talked about its effects specifically on beef production and prices.
“Before we discuss the drought impacts, it is important to have a perspective on the underlying beef market situation,” Peel said.
Cattle numbers have declined 13 of the last 15 years in the U.S. Through most of this period, total beef production has not been impacted much because the reduction in cattle numbers leads to more slaughter in the short run.
However, at some point beef production must drop because the industry reduces to a critically low level of cattle inventory. The beef industry has reached this point in 2011 and, even without a drought, beef production would have begun to drop sharply in the last part of this year.
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