Heifers remain a significant part of fed cattle population, indicating producers are not yet rebuilding herds.

Quarterly average prices in October hit a new all-time high of $2,600 per head according to estimates from the USDA.

With current milk prices, dairy farmers are trying to lower costs, while optimizing their return opportunities. With the average cost of raising a dairy replacement heifer at over $2,500, according to a 2019 Cornell Cooperative Extension survey, heifer inventory management and raising the right replacements is a critical part of that plan.

Productive life can be like a New Year’s resolution. It sounds like a good idea, but often it doesn’t come true. Increasing the productive life of dairy herds needs to be a priority for the dairy industry.

Every cow you create might not be right for your market. To withstand market ebbs and flows, you need to create cows that meet the needs of your operation.

For those who see the opportunity to expand, if they use their data and invest where they get the biggest return, they stand the highest chance of success. Will the beef cow herd continue to shrink, or will we see some expansion? Only time will tell.

Few times in history has the cattle industry offered more opportunity for profit to conscientious producers than right now. That was the primary message of CattleFax CEO Randy Blach’s executive summary at CattleFax’s Industry Outlook Seminar on Feb. 2.