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Savings Experiment: Snow RemovalIf the initial data points of the 21st century are predictive, undergraduates may want to shift their career goals to farming and agriculture.
Meat and dairy prices, already forced higher by rising food demand in emerging markets and sky-high energy prices, are likely to move higher still, due to flooding in the Midwest U.S., The Associated Press reported Monday.
Already high corn costs had compelled farmers to reduce animal production, resulting in higher prices for these products. Now, beef, poultry, pork, eggs, cheese and milk prices are expected to rise even more, as owners are forced to slaughter more livestock to cope with the higher costs of raising their animals, or as they go out of business.
Livestock producers' costs soar
Economist Glen Langan told BloggingStocks Monday the livestock segment is facing its biggest transformation -- and highest costs -- in more than 30 years. "Corn costs have doubled, from $4 a bushel to $8, while energy costs have gone through the roof. This will force many producers out of the market," Langan said. "Only the most efficient, modern producers will survive, with a few exceptions. That will easily push meat and poultry prices 20% higher or more from current levels. Dairy is harder to predict, because it's more localized, but there will be dairy price increases, too."
A ray of light for consumers: livestock production from international markets, such as Brazil and Argentina, Langan says. Foreign livestock producers will somewhat offset production losses in the U.S., easing price gains in 2009, barring major, adverse weather in the U.S. next year, he said. However, long-term, 3-5 years out, meat and dairy prices are likely to far exceed the average, annual increase for the U.S. consumer price index.
"That business career in you child's future may now have to change," Langan said. "At this rate, the new, cool career is going to be farming or agribusiness."
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Reader Comments (Page 1 of 1)
6-23-2008 @ 2:33PM
william lindblad said...
Mr Langan might be a good economist but he lacks knowledge about farming. Goverment stats will tell the story and it goes like this - farming is mostly big business operations. The small farm has been in steady decline since WWII. Most States have farm preservation acts to try to keep the small ones alive and the programs from the USDA are designed to do likewise. The dairy farmers all make money and will continue to do so as too much depends on them. But, all in all, food is going up. The tractors run on oil products and so do the trucks and trains that deliver fertilizer and a dose of bad weather in the grain belt is topping it off. Only a few years ago there was a hay shortage which jacked up prices in the stores. When you couple man made with weather there is only way -up.