NFCS: Northwest Livestock Industries Starting the Year Strong

As we continue to preview the upcoming growing season with Northwest Farm Credit Services, we take a look at the Northwest Livestock Industry.  NFCS’s Michael Stolp said Northwest cattle producers and feedlots increased feed rations with cold weather and above-average precipitation this winter.

"Spring pasture conditions are better than in past years, where select areas faced significant drought stress. Overall, prices for most cattle prices rallied during the first quarter of 2017 after a volatile end to 2016, supported by domestic consumption and export demand.

Stolp said as far as the next years, the outlook for cow/calf producers and feedlots include profitable operations with active marketing and risk management.

When taking a look at the dairy numbers, Stolp said Northwest producers added 7,000 cows from this time last year. However,

“Milk production remained unchanged. Severe winter weather weighed down milk per cow and increased costs. Nationally, milk production is up from the prior year, fueled by 66,000 more cows. U.S. cheese inventories and European skim milk powder stocks remain high, limiting milk market upswings and Northwest producers’ profits.”

Stolp said Northwest hay markets are stronger as colder-than-normal weather and prolonged periods of snow cover drove cow/calf producers to feed substantially more feeder hay than anticipated.  This is a boon to the industry as feeder hay inventories move lower going into the 2017 production season.  Although prices are down 9% from the prior year, the total value of forage exports increased from 2015 to 2016.

Join us Tuesday as we wrap up our three part preview, when we take a look at Apples and cherries.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com