November 25, 2008
All segments of the beef industry are contracting, according to Andy Groseta, president of the National Cattlemen's Beef Association.
Feedlot prices have decreased, and profits are declining due to higher grain prices and lower fed cattle prices, said Groseta.
USDA livestock analyst Shayle Shagam said the number of cattle of feed in the US has dropped about 7 percent on-year, while placements fell sharply by 11 percent.
Groseta said they have lost US$3.1 billion worth of business.
"In the last 11 consecutive months we've lost money in the cattle feeding business in the United States, and so it's taken a lot of equity out of our business," said Groseta.