Understanding Consumer Demand Trends Key To Producer Success, Robb SaysTue, 07 Feb 2012 11:40:18 CST
The good news and bad news for beef producers is that beef prices are expected to go higher says Jim Robb of the Livestock Marketing Information Center. He says the trends in the beef markets over the next few years will make it crucial for producers to keep consumer demand top of mind.
Drought-related herd liquidation has only added to the upward pressure in beef prices and the supply crunch internationally will continue for the next few years, Robb says.
While cattle numbers are down about three percent in this country, Robb says there are indications more heifers have been kept back to rebuild herds. Such is not the case overseas, he says, where cattle numbers are still declining.
It will be at least 2015, Robb says, before we see much increase in U.S. beef production. That doesn’t necessarily mean domestic consumers will see declining prices because of expected increases in demand from foreign markets.
Robb says that sustained high prices mean that domestic consumers will be expecting a high-quality product which producers must be prepared to meet.
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