In other words, more milk is not necessarily better as heavier milking cows may require more nutritional inputs to maintain body condition and reproductive efficiency. Breed needs to be an important consideration when evaluating milk EPDs. Very high milk EPDs for bulls in breeds noted for heavy milking ability may not be advantageous. The livestock and meat complex is shaping up as something of a bright spot in the overall markets, especially in cattle. I believe we have skirted past the dangers of getting caught holding cattle hoping for better prices and moving weights and tonnage up to burdensome levels.
Demand continues to look good.
The demand index I've calculated and maintained for the industry is showing third quarter demand up 10.5 percent since 1997. We have heard talk about boxed beef values being down, and such symptoms have been used as indications that demand is weaker this year, but that type of reaction is not appropriate. You really only test the strength of demand at the consumer level, where the buyer has to decide whether to take the product offering at the listed price. At that level, we have seen generally higher prices and prices up enough to more than offset inflation in the presence of increased quantity taken. That is a textbook indication of improvement in demand.