Animal Science Department


Date of this Version

December 1995


Published for Proceedings, The Range Beef Cow Symposium XIV December 5, 6 and 7, 1995, Gering, Nebraska.


A few years ago a NCA task force committee made the following statement:

"Low-cost producers (in all segments of the production chain) will survive in this system of competitive markets. Others [high-cost producers] will eventually be unable to compete and will exit the business."

Initially, this pointed summary statement fell on deaf ears as cattle prices were relatively good and many producers said they couldn't reduce costs as each year their costs were increasing. Currently, the high-cost producers are exiting the cattle business or depleting assets. Other cow/calf producers have positioned or are positioning themselves as low-cost producers. An increased number of producers are finding that low-cost production is not only possible but exciting and essential.