Yes, I do realize the capacity issue. But look at the big picture. The land is finite and ethanol for energy is on the horizon. You have many people from Europe, Asia, and especially the Americas immigrating to your country, which will lead to more urban sprawl.
Within 20 years, America's
arable land distribution of hectares per capita dropped from 0.83 to 0.64. (As a comparison, Canada's is 1.51 and China's and the U.K.'s is 0.10.) The difference between being a big grain exporter and a necessary big grain importer can be signified by this bit of data. At a time when arable land use is beginning to be used for non-food purposes (e.g. ethanol), this capacity is far more reduced than it seems.
With reduced capacity or possibility for expansion (not to mention rising feed and energy prices), there are fewer low-cost alternatives to market fluctuations. What the first article of my last post pointed out is that meat consumers are going for cheaper forms of meat (i.e. pork and chicken). This reduces the overall demand on beef, which is continuing to hurt the prices and is why you see the need to cut production. As grain prices continue to rise in light of limited overall global capacity and high demand, the cost of producing beef will remain high and will continue to increase out of step with other sources of food.
The cost of beef production is high compared to chicken, which many consumers are turning to (away from beef) not only because of price, but health reasons as well. The questionable demand for beef in addition to the pressures of capacity and the cost of production (i.e. grain and transport) will only put a further squeeze on beef prices.