High: 74º Low: 48º
High: 75º Low: 43º
High; 52º Low: 34º
High Feed Costs Impact The Cattle Industry
Rupert, Idaho (KMVT-TV)
The high grain and feed prices continue to take a toll on the livestock industry. Higher feed costs reduce profit margins and can lower bids for beef cattle.
“You know last year we were feeding cattle for in the neighborhood of a hundred and three to a hundred and ten dollars a ton. That's to the cattle with yardage. This year we are upwards of a hundred and twenty five dollars to a hundred thirty for the same ration,” said Dan Schaeffer, a cattle farmer from Rupert.
Has no choice but to past the cost on to his customers.
“My customers are not liking it to much but I have to past the cost along. And then they are caught in the middle since the fat market is down,” said Dan Schaeffer.
Corn is going for three hundred thirty to three hundred and forty dollars a ton.
“That's because of the shortage back in the Midwest where there are drought conditions. And let's face it we aren't looking to shiny in this area for drought,” said Dan Schaeffer.
While feed prices are high, some farmers are getting creative when it comes to feeding their cattle.
“We're feeding considerably amount of potatoes right now. Because the potato market is down and so we are substituting a little bit of the corn for potatoes,” said Dan Schaeffer.
Some farmers across the Western United States have even started feeding their cows candy to cope with the high corn prices. Retail prices for pork and beef in the United States have remained stable so far. Analysts say prices could rise by the beginning of next year.