Economic Difficulties and the Livestock Industry

The past couple of years have been very difficult for livestock producers. Prices for beef, pork, and chicken have either stayed steady or decreased, and feed prices have skyrocketed. The recession has only made a difficult situation worse.

The dairy industry has been hit with rising prices and unstable markets. In response, the U.S.D.A. has agreed to step up dairy price supports (Sally Schuff, Feedstuffs, Aug. 3, 2009 pg. 1). The increase will raise the price for nonfat dry milk 12 cents/lb., the price of cheddar blocks 28 cents/lb, and the price of cheddar barrels 18 cents per pound.

Louisiana has also felt the downturn in the livestock industry. The chicken processor Pilgrim's Pride announced the closure of their plant in northeast Louisiana earlier this year. While the plant was able to remain open after its sale to California-based Foster Farms, the state of Louisiana had to pony up an undisclosed sum of money to make the deal happen.

The economic downturn could also affect the livestock industry in the long term, through a decrease in research and accompanying technological advances:

Michigan State animal science professors James Ireland, George Smith, and Jose Cibelli and five other colleagues from other institutions warned in the recent issue of Science that the continuing decline in federal funding for animal and biomedical research jeopardizes animal science studies (Tim Lundeen, Feedstuffs, July 13, 2009 pg. 1).

More proof (as if we really needed it) that the recession is touching nearly every industry in some form or fashion.