Mid- December crop and livestock prices from the Colorado Agricultural Statistics Service (CASS) provided a mixed outlook for agriculture producers.

While crop producers may not be pleased with the latest prices, cattle ranchers may finally see a positive trend in the market.

Mid- December 1999 crop prices were down compared to the previous year except feed barley and potatoes, while livestock items except milk averaged higher.

Alfalfa hay, at $66 per ton, was unchanged from November but was $22 below December 1998. Cow prices were up $2.80 to $37.40 per hundred weight (cwt) and were $6.80 per cwt above December 1998. The mid- December calf price increased $8.20 from November to $101 per cwt, $18.30 above the $82.70 per cwt a year ago.

Cattle producers have reason to be positive about the industry in 2000.

The beef market is well known for its cycles, according to Frank Lombardi, executive director of the Colorado Beef Council, but he sees this most recent rebound in the beef market as a long-lasting trend.

“We’re seeing, coming into the new year, an increase in the consumption of beef across the board,” said Lombardi. “The consumers have been on average buying more beef in restaurants and in super markets. I think we have seen the increase due to some positive press about the product.”

Lombardi looks forward to continuing the trend in higher beef consumption, but he points out that to really benefit beef producers, the value of the product has to be marketed. As it stands, 50 percent of the beef that people consume is ground. According to Lombardi, once people start consuming more of the higher quality cuts, such as rounds and chucks, producers will benefit even more.

“Right now we are at the tip of the iceberg,” said Lombardi. “We’re trying to increase the value of the chuck and the round. When we are able to increase the value of the product producers will see higher prices.”

Trevor Tuell, director of quality resources for the Colorado Livestock Association, also believes the future is bright for cattle producers.

“I think for the next several years we will see the market hold or go up,” said Tuell. “Guys should finally be making more profit.”

Tuell attributes the beef market recovery to the increase in beef convenience products and the fact that more people are going to restaurants to eat.

According to Tuell, the increase in beef prices may be for the long term.

“Ranchers are going to be keeping more replacement heifers instead of sending them to feed lots,” said Tuell. “Right now things are looking up for beef producers.”