The cattle and beef margin squeeze

The cattle and beef industry consists of primary production at the cow-calf level followed by a series of margin sectors for stocker and feedlot production; slaughter and fabrication at the packing level; and a multitude of beef product markets including retail grocery, food service and exports. Price adjustments in each of the industry sectors are related but variable in magnitude and timing. It is generally true in food markets that prices at retail adjust less and more slowly than farm level. Increasingly tight cattle supplies suggest that margins at all levels above the cow-calf…