Time for a Turnaround?

No doubt cattle producers have weathered a "perfect storm"? of economic stresses in the catle business over the last couple of years.

Not only has the industry seen the collapse of the credit and financial markets combined with sharp reductions in consumer beef demand, all of this was predicated by unprecedented volatility the commodity markets.

Remember last summer's $5 diesel fuel?

But there are reasons to be optimistic, and as the industry looks toward summer and fall, Beef Northwest believes the clouds may finally be parting.

Here's why:

U.S. cow herd inventories are now at their smallest levels in 50 years. USDA pegs total numbers at 96 million head, which is down sharply from just a few years ago. Even the Oregon Department of Agriculture has the state's cow numbers down by nearly 15 percent.

Historically, when inventories are low, prices gain strength.

As the general economy begins to turn around, we expect to see increasing consumer demand chasing smaller inventories of cattle. We believe the cow-calf producer will be in the driver's seat.

The market volatility the industry experienced last year for feed, fuel and fertilizer has stabilized, an indication that the industry may be moving into a calmer marketing climate.

There are also signs that the real estate, financial and lending sectors within the general economy are beginning to see some strength "which should buoy consumer demand for beef as the improvement continues.

We believe we're operating in a different world, and the key to success is for ranchers to evaluate their strengths and weaknesses and identify opportunities for marketing cattle and managing risk that best suit their own needs.

If a rancher can develop a marketing program that adds value to their cattle, and identify ways of evaluating and managing risk, they will be successful in the future.

Currently, BNW offers a wide array of marketing tools to customers that can help them manage risk and maximize returns on their investment.

In addition, BNW also works with several production and marketing alliances "including Country Natural Beef, Certified Angus Beef and the Northwest Premium Genetics Partners" that add value to cattle.