Looking ahead at megatrends in the industry
September 16, 2024
Lee Leachman, a renowned cattle breeder and CEO of Leachman Cattle Co. in Fort Collins, Colorado, recently shared his vision for the future of the beef industry. With decades of experience in multiple registered breeds and as a pioneer of industry innovations such as the beef-on-dairy movement, Leachman delivered the keynote address at the Brangus 75th Celebration in Fort Worth. He presented his thoughts on “The Next 25 Years” to over 400 Brangus breeders.
Leachman began by emphasizing the accelerating role of genomics in achieving industry goals, noting that this trend will continue to shape the future. He highlighted that the global demand for exceptional beef is unwavering and that every segment of the industry contributes to the final product. However, he warned that half of today’s producers risk being left behind if they fail to adapt to upcoming changes.
“I see a number of megatrends coming to our industry and they will have crucial roles in shaping the future of U.S. beef production,” he stressed and then outlined the following:
- Economy: The global economy is projected to double to over $220 trillion, leading to increased consumer spending on food and enhanced dining experiences. This trend will drive demand for high-quality beef with a focus on texture and taste, along with the rise of direct-to-consumer beef deliveries.
- Aging Population: By 2050, the global population will include twice as many people over 60 years old. This demographic shift will require beef with higher nutritional value to promote longevity and better health.
- Connected Consumers: Future consumers will demand more information about the products they buy, including how and where beef is raised, and will prioritize local and specialized items.
- Advancing Technology: Technological advancements will transform traditional tasks, such as heat detection and identifying sick animals, with machines and AI taking a more prominent role. Leachman predicts more will be done with the machine than the eye.
- Disease Mitigation: As disease pressure increases, producers will need stricter biosecurity measures to protect their operations from potential threats. Cattlemen will have to care more about what diseases trucks, people and even birds can bring onto their properties.
- Resource Pressure: With a projected 60% increase in consumer consumption of resources by 2060, the industry will face greater challenges in producing more beef with fewer resources. “Because of this megatrend, producers will need to increase the number of smaller frame cows they own, increase hybrid vigor, increase feed conversion, decrease death loss and produce higher percentages of muscularity in carcasses. There will be more pressure on how you manage your land, soil, grass water and cows,” he stressed. He sees this leading to decreased cow numbers, decreased numbers of seedstock operations and less commercial cow/calf outfits.
- Data-Driven Decisions: Data is powerful and it’s now the driver. The next 25 years will bring an explosion of data, which will be crucial for making informed decisions. Leachman urged producers to adapt and harness the power of data.
- Artificial Intelligence: AI will become a key tool in managing complex data, making decisions and determining success in the industry. “The use or nonuse of AI will determine the winners and losers,” he stated.
In conclusion, Leachman affirmed that the growing demand for beef will push the industry to meet the challenges and changes of the next quarter-century. Further details of his presentation will be available in the October issue of the Brangus Journal at gobrangus.com.
Sidebar: Lee Leachman and Leachman Cattle Co.
Lee Leachman is the CEO of Leachman Cattle Co. of Colorado, one of the top five seedstock breeders in the U.S., marketing over 2,000 bulls annually. Leachman graduated with honors from Harvard University in economics and later studied animal breeding at Colorado State University.
After college, he joined his family’s operation in Billings, Montana, helping build it into North America’s largest beef seedstock company. In 2003, he moved to Colorado and established Leachman Cattle of Colorado, where the company began large-scale data collection on feed intake and conversion.
Leachman Cattle Co. offers three proprietary indexes—$Ranch, $Feedlot, and $Profit—which guide their breeding and selection objectives. The company also markets Angus, Red Angus, Stabilizer, and Charolais bulls produced from a pool of 12,000 females in over 45 cooperator herds. Their flagship sale is held annually in March in Fort Collins, Colorado.
In addition to seed stock, Leachman Cattle Co. operates a semen marketing division, a custom semen collection division, and a data services department that provides genetic and profitability predictions for other producers. Their database includes over 1.2 million animals, with data from over 30,000 calves annually.
In August 2023, URUS Group of Madison, Wisconsin, acquired a majority interest in Leachman Cattle Co., a partnership aimed at accelerating genetic progress and producing the most sustainable beef possible. The acquisition gives URUS access to both Leachman’s genetics and database, considered the largest private database in the U.S. beef business with 1.5 million animals and about 130,00 tested with HD 50K.
Leachman Cattle Co. will continue to offer its products and services to progressive beef operations both in the U.S. and internationally.