The beef industry has made a powerful start in the new millennium. Drovers’ index of economic indicators showed four positive arrows, three sideways arrows and one down arrow. Production indicators and key cattle prices earned two of the up arrows. Feedyard margins turned positive for the first time in months. The fourth up arrow was earned by the beef market, which demanded more beef at higher prices. The sole down arrow is due to increases in feed costs. Poultry became more competitive while pork lost some ground earning a sideways arrow. Higher slaughter rates and lower packer margins earned a sideways arrow. The inventory indicator was also sideways because beef cow slaughter is down but heifer slaughter remains high.