The agricultural industry is diverse and ever thriving, yet small dips and surges in the economy can have a powerful impact on a variety of sectors in the field. In particular, the fluctuating price of feed grains and livestock supplies can have a direct effect on the meat industry.

Consider that the livestock industry itself runs in a life cycle. When one element is disrupted, it can have a profound effect on another. As prices of grains and oilseeds rise, so too does the cost to produce and market meat and dairy supplies. This part of the cycle involves breeding animals to produce milk or yield products such as steak and chicken. All of these processes can take several weeks to several years.

Disruption in production occurs when livestock suppliers anticipate continuously high feed prices. As a result, they scale back the lengthy production of meat and dairy supplies. Conversely, a drop in the price of grains and livestock supplies can energize the industry considerably. With a stronger dollar, producers are more likely to invest in what they need from a feed mill to allow their livestock to thrive and, in turn, yield more meat.

One of the key issues that impacts livestock production is the discrepancy in time. Since it takes a significant amount of time to breed the animals to a specific production point, producers decide on how many livestock supplies they need in advance. Greater output yields a greater need. However, by the time livestock is ready for production, prices on feed grains and supplies may be significantly higher. Essentially, the cycle runs on a bit of a backlog.

The producers themselves also have a strong influence on the market. Once led mainly by small-scale producers, today the industry is rife with much larger production companies with more capital at their disposal. The more these producers spend, the more likely that costs will remain high — and continue to rise.

Bethel Feed & Supply Pet & Garden Center is the leading source for livestock supplies in Bethel, OH. Local farmers rely on the feed mill to provide everything they need to maintain healthy livestock. Visit the company’s website to view these and other products, including pet accessories and garden supplies. You can also give them a call at (513) 734-2246.