The first six months of 2020 have been a whirlwind of constantly changing issues and Colin Woodall, CEO of the National Cattlemen�s Beef Association, believes the cattle industry is now seeing some daylight after months of uncertainty, and he expects the last half of the year to be better.
The good news is we have returned to about 95 percent of our packing capacity, Woodall said, and that is quicker than anybody thought possible.
This means we are able to keep the meat cases full so we can maintain customer base, Woodall said.
He is optimistic the plants will get to 100 percent, but it might be September before that happens.
It�s going to take a few more months to work through the backlog of cattle waiting to be processed and until we get that done there will be downward pressure on prices, Woodall said.
This is a big discussion issue for the NCBA�s cattle marketing working group and will be a major focus at the NCBA summer conference, July 27-30 in Denver, Colo.
We are moving forward with an in-person meeting, Woodall said.
We are going to be social distancing and do everything we can to protect everybody, but we felt given all the issues this year we needed to have that face-to-face discussion, he said.
Woodall said there is going to be a lot of discussion on the cattle working group, EPA�s new WOTUS rules and COVID-19 stimulus package funds.
This will be a great opportunity to update everybody, he said.
Another issue sure to be discussed is the new NAFTA or USMCA that became law July 1.
Woodall said the cattle industry has spent almost three years working through the process and is thankful for President Trump keeping his word on renegotiating the trade agreement.
For us there is not a whole lot of new access but rather it gives us the certainty to retain market access with Canada and Mexico, which are two of the top five markets for beef exports.
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