Wednesday, February 27, 2008

Tyson Foods president says cattle cycle 'may have peaked forever' because of ethanol

Recently we reported one major bank's opinion that the cattle market may no longer be cyclical. According to Tyson Foods president and CEO Dick Bond, the nation's cattle industry should brace for major reductions in herds, reports Mark Lefens of

"Bond painted a new scenario for the U.S. beef industry where higher input costs force producers into a long-term herd reduction, packers reduce excess capacity and consumers pay more for beef," Lefens writes. "Bond singled out what he called the 'almost criminal' government mandates supporting ethanol production, which he said have doubled the cost of feed grains."

Bond said beef producers must move respond to the desires of consumers with newer products more in line with changing tastes and diets. He also called for increased traceability when it comes to cattle. (Read more)

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