By Jamie Martin
The cattle industry is poised for a strong year in 2025, with tight supplies and growing consumer demand keeping prices high. At CattleCon 2025, CattleFax CEO Randy Blach provided insights into these market trends, highlighting the importance of quality and efficiency in driving profitability.
Blach explained that cattle numbers will remain low in the coming years, but producers will see price increases as early as 2025. "Over the last 50 years, each of these cycle highs we’ve gone through has been lower," he said, advising producers to focus on long-term strategies rather than expecting new price records.
Profitability in the cow-calf sector has reached historic highs, but differences in costs across regions remain a challenge. Blach emphasized that strong signals in the market suggest producers should consider retaining heifers to stabilize herd numbers and maintain supply.
A key shift in the industry has been the rise of value-based marketing. Over the past two decades, grid sales have surged from 30% to 65%, rewarding producers who focus on quality beef. The premium pricing structure reflects consumer preference for high-grade beef, which has grown significantly in recent years.
Blach highlighted the shift in beef quality, noting that in the 1980s and 1990s, only 50% of cattle graded Choice or Prime. Today, most cattle meet this standard, contributing to sustained demand growth. "This is why we’re enjoying the demand growth that we’re experiencing in our industry," he stated.
Looking ahead, the cattle industry remains well-positioned for long-term success. Producers who continue focusing on quality and market-driven strategies will benefit from strong demand and price stability in the years to come.
Photo Credit: gettyimages-imaginegolf
Categories: National