Preparing Future Leaders for the Beef Industry

By: Jason K. Ahola, Ph.D., Associate Professor, Beef Management Systems, Colorado State University

Without question, significant opportunities exist today for young people in the U.S. beef industry. Our nation’s cattle producers are getting older. In the 2007 census, the average farmer was 57 years old, and USDA reported that two-thirds of cow/calf operators were over 50 years old. This is resulting in a massive generational transfer of agricultural operations across the U.S.

In the west, it has been estimated that over 50% of all ranches will change ownership in the next 10 years – either through inheritance or sale to a new buyer. Unfortunately, we are losing more than 1% of beef cattle operations each year – about 8,500 annually. As a result, over 170,000 beef operations have gone out of business since 1992. It is time we focus our efforts on educating our youth and providing them with skills needed to join a rapidly-changing and globalized beef industry. Ideally, they will then become its future leaders.

A Time of Opportunity

Even with new challenges and elevated input costs, today is a great time for young people to get into the beef industry. To many, that sounds like a crazy idea. But, consider a few facts about today’s industry:

1. The U.S. beef cowherd inventory is declining, which will result in another relatively small calf crop (similar in size to 50 to 60 years ago). Fewer calves will result in higher calf prices, as long as consumer beef demand remains stable.

2. Global beef demand continues to increase substantially since it is closely linked to the Gross Domestic Product (GDP) growth of large countries like China, India, Indonesia, and Brazil. Global beef demand will continue to support beef price at retail.

3. Compared to competing animal protein sources (i.e. poultry and hogs), a ruminant is the only animal able to take advantage of readily-available low-cost feeds like crop residues (corn stalks, straw) and rangeland grazing. Since much of the U.S. can only be used to produce, beef cattle production will continue to have ready access to forage inputs.

4. Marketplace premiums as a result of adding value to calves are now a reality. This includes source verification, preconditioning programs, natural and organic claims, and animal welfare verification. Most producers don’t take advantage of these methods to increase income, but those who do are reaping the financial rewards.

5. Several low-cost technologies are available to improve production efficiency and product quality, but are rarely used. These include semen (particularly sexed semen), electronic identification, computer software for individual animal management, and genomic tests to improve selection. Producers who embrace innovation will see improved profitability.

Being an optimist and taking into account these points, right now IS a great opportunity for young people to get involved in the beef industry. However, new entrants must work within a completely different set of paradigms in order to succeed. This includes managing high-priced grains and forages, elevated diesel and equipment (e.g. pickup, tractor) costs, and general risks that are inherent to global agricultural industries.

Characteristics and Skills Needed

The new set of skills that is being required by young people must be acquired from several different sources. It is no longer possible for “real-world” experiences alone, or only a university education, to provide adequate training. And, future beef industry leaders need to be savvy in both animal husbandry and business.

So, what are the key skills and characteristics that young people need to have?

Know the Globe: Today’s beef industry is clearly a global business. It has become increasingly important to understand societies, markets, trade, world supply and demand, and the interrelationships of major markets (e.g. oil, grain, and meat). Over 95% of the world’s 7 billion people don’t live in the U.S. But, about 12% of the world’s beef cows do. And, beef cow distribution in the world continues to change – for instance, the beef cow inventory in the past 5 years declined about 10% in the U.S., but increased 8% in Brazil.

Be a Communicator: Without question, communication skills are the most important set of skills any young person can compile and use to ensure a lifetime of success. These include interpersonal, leadership, writing, listening, negotiating, moderating, mediating, and public speaking skills. Working in the industry requires daily communication with everyone from cowboys and ranchers to retailers and consumers.

Learn Another Language: Learning a foreign language as a young person is much easier than as an adult. We’re in a global economy – there are over 250 different languages that are spoken by at least 1 million people each. And, 65 of these languages are spoken by at least 10 million people each. As exports play a larger role in the U.S. beef industry, we will need greater representation in foreign markets to be competitive. Interestingly, it has become common for Animal Science students studying at Brazilian universities to learn Mandarin Chinese, based on future trade potential between those countries.

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