The cattle market, including dairy culls, is expected to see continued strength in 2012, with the potential for double-digit gains again this year – which is good news for dairy operators. The dairy industry will continue to see strong prices for its culled cows through 2012, with more upside potential than in 2011. This rise in prices has been driven by severe weather in Texas, meat supplies lagging global income growth, a depreciation of the U.S. dollar, which encouraged beef exports and discouraged imports, and expanded export opportunities. This secondary income stream offers some reprieve to dairymen, as margins for milk have again tightened.