Revenue growth is essential to garner new expansion opportunities for any business and/or industry (often referenced as “top-line growth” given that revenue is always at the very top of the income statement). Revenue available to the production sector begins at the feedyard , and subsequently flows back upstream to stockers , backgrounders and cow-calf producers . It should be noted that revenue should NOT be confused with profitability. Rather, it’s simply an indicator of total dollars available within the business.
Breaking It Down: High-Profit Vs. Low-Profit Beef Producers 
Total feedyard revenue is a function of three factors: live weight, number of cattle marketed, and the overall market. Revenue declined in 2009 on the heels of the financial crisis  and weaker markets. However, it has surged nearly 50% since then. The overall estimate for 2012 establishes a new record and exceeds $35 billion.
However, any number of factors could potentially impact that in 2013 including tighter cattle supply , overhead resistance in the live market, and potential for continued high corn prices (thus limiting weight of feedyard sales). That has some significant connotations for the industry – especially around infrastructure and supporting industries around the production sector. How do you see this trend playing out in 2013? Leave your thoughts in the comments section below.