(NAFB) – Cattle price and profitability trends for producers are pointed in the right direction, even as challenges and uncertainty persist, according to CattleFax.

The CattleFax Outlook at the 2022 Cattle Industry Convention provided a market analysis to attendees Wednesday. While issues around labor and packing capacity have lingered, both are expected to improve in the year ahead. Expansions in capacity combined with strong global and domestic consumer beef demand suggest increased profitability across segments, signaling a market that is healthier and more stable in the year ahead, according to CattleFax.

Kevin Good of CattleFax reported that U.S. beef cow inventories have fallen more than 700,000 head from last year and are off nearly 1.6 million from cycle highs. This year, the beef cowherd will near 30.1 million head. The feeder cattle and calf supply will be 675,000 head smaller than last year, totaling 25.5 million head. Fed cattle slaughter will decline 400,000 head lower compared to last year, at 25.7 million head.