Beef Buzz News
Packing Plants Quickly Returning To Year-Ago Capacity
Tue, 02 Jun 2020 10:29:51 CDT
Beef processing is nearing year-ago capacity quicker than many experts predicted and Dr. Derrell Peel, OSU Extension livestock market economist explains why in today’s Beef Buzz with Radio Oklahoma Ag Network Farm Director Ron Hays.
Ron Hays Beef Buzzes With Dr. Peel
We’ve made remarkable progress, faster than many thought, Peel said, and packers have plenty of incentive to get back to capacity as quickly as possible.
Estimated weekly slaughter is about 89 percent of one year ago and Peel said the carcass weights are 40 to 50 pounds heavier than normal, causing some difficulties with catching up on the backlog.
The heavier carcass weights this year are equal to adding about 30,000 head to the weekly slaughter as compared to a year ago, Peel said.
That’s helping ease the beef shortages in the near term but eventually the heavy weight cattle need to move through the system.
Peel predicts on the consumer side most of the meat supply should return to normal in the next couple of weeks, but it could take months for the feedlots to get through the backlog.
On the demand side, wholesale boxed beef prices have dropped $100 and Peel expects the price to come down more but volatility in the market coupled with uncertain economic times makes it difficult to predict how low the boxed beef prices will go.
At some point the reality of unemployment kicks in and that could play a role in reducing beef demand, Peel said.
Click on the LISTEN BAR below to hear more comments from Dr. Peel.
The Beef buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
OSU's Dr. Derrel Peel says Producers Need to be Prepared for Drought Thu, 02 Jul 2020 09:26:37 CDT
There is Plenty of Beef This Summer Says OSU Extension Livestock Economist Derrell Pell Wed, 01 Jul 2020 08:28:23 CDT
NCBA's Alisa Harrison Explains New United We Steak Grilling Campaign Just In Time For The July 4th Holiday Tue, 30 Jun 2020 09:44:24 CDT
NCBA's Scott Yager Tells Landowners To Enjoy New Trump WOTUS Rule Which Became Law June 22 Mon, 29 Jun 2020 09:32:21 CDT
NCBA's Alisa Harrison Says Beef Industry Has Vast Amount of Resources To Meet Consumers Changing Behaviors Fri, 26 Jun 2020 09:02:11 CDT
Oklahoma Task Force Member John Pfeiffer Says They have Studied The Idea Of Opening New Meat Plants But Logistics Pose Major Challenge Thu, 25 Jun 2020 15:59:11 CDT
Mulhall, Okla. Rancher John Pfeiffer Says Joint Task Force Studying Ways To Expand Meat Processing In Oklahoma Wed, 24 Jun 2020 10:36:53 CDT
There Is Light At The End Of The Profitability Tunnel For Cattle Producers, Says OSU's Derrell Peel Tue, 23 Jun 2020 10:21:37 CDT
Cattle on Feed Report No Surprise, Says OSU's Derrell Peel, As It Shows Large Drop In Marketings Mon, 22 Jun 2020 10:50:52 CDT
NCBA's Danielle Beck Pleased With Progress On Updating USDA's Dietary Guidelilnes Fri, 19 Jun 2020 10:06:05 CDT
Livestock Economists Derrell Peel and Don Close Weigh In On U.S. Beef Exports and Imports During NCBA Webinar Thu, 18 Jun 2020 10:13:16 CDT
K-State's Glynn Tonsor Worried Domestic Beef Demand Is Going In The Wrong Direction Wed, 17 Jun 2020 10:40:56 CDT
Upcycling Cattle Can Improve The Environment Says Don Close, Rabo AgriFinance Tue, 16 Jun 2020 18:57:17 CDT
Trade Negotiations Continue Despite Pandemic Concerns, Says NCBA's Kent Bacus Mon, 15 Jun 2020 09:22:16 CDT
Rabo's Don Close Believes Beef Industry Sustainability Tested By Pandemic Fri, 12 Jun 2020 12:14:11 CDT
Future Looks Bright For U.S. Meat Exports As World Recovers From Pandemic Thu, 11 Jun 2020 08:41:19 CDT
Latest Report Shows U.S. Meat Exports Surpisingly Strong Wed, 10 Jun 2020 10:15:55 CDT
Cattle Producers Need To Be Proactive in Treating Trichomoniasis in Breeding Herd Tue, 09 Jun 2020 10:04:03 CDT
Rapid Advancements in Genetic Information Improving Profitability Mon, 08 Jun 2020 10:32:11 CDT
KSU's Dr. Glynn Tonsor Explains Why Beef Imports Are Necessary For Robust Beef Exports Fri, 05 Jun 2020 09:41:13 CDT
Cattle Producers Concerned About April 15 CFAP Date Thu, 04 Jun 2020 10:10:11 CDT
Ample Cattle Feed Supplies Good News For Producers Wed, 03 Jun 2020 08:06:22 CDT
Packing Plants Quickly Returning To Year-Ago Capacity Tue, 02 Jun 2020 10:30:12 CDT
California Scientist Believes Cattle Are Not Adding Extra Methane To The Environment Mon, 01 Jun 2020 09:44:11 CDT
Cong. Frank Lucas Suggests Meat Packing Industry Has Become Too Concentrated Fri, 29 May 2020 10:28:11 CDT
Amount of CFAP Payment For Cow/Calf Producers Dependent on Timing and Managment Practices Thu, 28 May 2020 13:34:18 CDT
CFAP Payments For Cattle Producers Close To Estimated Losses Says OSU's Derrell Peel Wed, 27 May 2020 10:11:58 CDT
OSU's Dr. Peel Says Packing Plants Have Incentive To Return To Full Capacity Tue, 26 May 2020 09:50:06 CDT
No Surprises Found in the May USDA Cattle on Feed Report- So Says OSU Economist Dr. Derrell Peel Sat, 23 May 2020 16:41:14 CDT
Animal Rights Activists Using COVID-19 Crisis To Attack Ag Animal Industry Fri, 22 May 2020 10:30:10 CDT
NCBA President Marty Smith Encouraged By Government Aid Program And Packing Plant Progress Fri, 22 May 2020 03:55:11 CDT
Boxed Beef Prices Fall As Supply Chain Catches Up With Demand Wed, 20 May 2020 10:20:11 CDT
Packing Plants Slowly Increasing Capacity But It Could Take Months To Work Off Cattle Back Log, Says KSU's Dr. Glynn Tonsor Tue, 19 May 2020 09:40:55 CDT
Packing Plants Slowly Increasing Capacity But It Could Months To Wrok Off Cattle Back Log, Says KSU's Dr. Glynn Tonsor Tue, 19 May 2020 09:18:11 CDT
Consumers Will Have Plenty of Beef For Memorial Day Cookouts, Says NCBA's Colin Woodall Mon, 18 May 2020 09:44:12 CDT