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Headwinds facing beef industry

A beef industry expert says the industry faces some headwinds. Paul Dykstra with Certified Angus Beef says retail prices continue to climb, and beef is at a competitive disadvantage compared to other proteins. 

“Our disadvantage from a price perspective has only gotten greater over the last number of years,” he says.  “We sure better build beef demand and keep it front and center of our base because our product isn’t one of the cheaper food items out there.”

He tells Brownfield the current lending environment also makes it challenge for the industry to expand. “Value per head becomes pretty important because cost per head becomes pretty high,” he says.  “That’s not going to turn around anytime soon, regardless if interest rates come down.  The cost of doing business just increases.”

Which is why, he says, making investments in genetics is a solid risk management tool.

AUDIO: Paul Dykstra, Certified Angus Beef