May 23, 2024

StoneX Analyst Predicts Strong Demand for Beef-on-Dairy Hybrids

In a recent Bloomberg article, Nate Donnay, Director of Dairy Market Insight at StoneX Financial, shared his predictions about the demand for beef-on-dairy hybrids, as dairy farms are refocusing their breeding programs in the face of stagnant dairy prices in recent years.

Beef prices have exploded since the pandemic, with America’s beef supply the lowest it’s been since 1961. The beef-on-dairy hybrids function as a diversified income stream for struggling dairy farms, who are taking advantage of extremely strong red meat demand.

Despite the benefits, shifting breeding programs to include beef-on-dairy hybrids carries risk, as the number of available replacement cows for dairy herds in January 2024 was the lowest for that time of year in two decades. Nate Donnay explained that the number of replacement cows is already “down to the minimum level” required to maintain the dairy herd.

“Ten years from now, the beef herd’s probably going to get too big again and prices will be terrible and maybe they don’t want these dairy animals anymore,” says Donnay.

“But for the next couple of years, that demand for dairy animals into the beef herd is probably going to stay strong.”

According to CattleFax, there were 12 times more beef-on-dairy calves born in 2022 than in 2016, indicating a significantly growing trend. At least for the time being, farmers can reap the rewards of the beef-on-dairy hybrids after years of struggling with low milk prices. 

Want more market insights?

If you’re looking to mitigate risk and make smarter investment decisions in dairy markets, sign up for StoneX Plus today and receive a free 14-day trial.

Sign Up

Read the original article here.

See why StoneX is a partner of choice

Have questions about our products or services? We're ready to help.
Start a conversation
See why StoneX is a partner of choice

StoneX: We open markets

Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.

  • Partnership icon

    Globality

    With access to 36+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.

  • PC Monitor Blue

    Expertise

    From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.

  • Price tag

    Transparency

    As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.

+
!

By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our  Privacy notice  to learn more.

If you're an existing customer, please direct any inquiries to your StoneX sales team.

Explore our offices