An Informed Veterinarian can Help Clients Profit from the Cattle Cycle

Abstract

The cattle cycle is the single most important force impacting your clients' beef cow profits. The alternative "booms and busts" associated with the cattle cycle have long been of great concern to beef cow producers. Always the question arises as to why the beef industry cannot maintain a sustainable growth in animal numbers that would prevent the economic booms and busts associated with the cattle cycle.

Much of the year to year variation in beef prices is driven by cattle numbers (i.e., beef supply). The cattle cycle is the single most important force determining beef supply and cattle prices. AB cattle numbers go up, beef prices go down. As cattle numbers go down, beef prices go up. It is almost that simple.¹

If we can predict cattle cycles, then we should be able to predict beef price cycles. If we can predict beef price cycles, then we should be able to identify production strategies that will allow your beef cow clients to profit from the cattle cycle. When your beef cow clients profit from the cattle cycle, your veterinary practice will also profit from the cattle cycle.