Fallout from the Drought Will Make Re-Introduction of LFTB to the Marketplace Necessary, Analyst SaysFri, 03 Aug 2012 17:21:45 CDT
As feed-grain and beef supplies tighten and increase in price, Don Close, vice-president of Rabobank's Food and Agribusiness Research and Advisory group, predicts that the portion of the U.S. beef supply that consisted of Lean Finely Textured Beef (LFTB) will return to grocers’ meat cases. Close authored a recent study which says beef supplies will be so tight that we simply will not have the luxury of wasting such a valuable source of protein.
“The bottom line is we’ve got a product that’s absolutely wholesome. We’ve got a product with an impeccable food-safety history. And we’ve got a product that reduces the cost of lean beef blends in the grocery store. So, if you’ve got those three things in favor of the product, they’re certainly overall supportive.
“The real driver that we saw is that as we see the total of beef supplies contract over the next 18 months to two years, and certainly with the added pressure we’re now seeing with feed-grain prices where they are, and the likelihood of contraction in all edible protein, we’re looking at increasing prices down the road that we simply don’t he luxury to waste two percent of our overall beef supply.”
Close says as meat prices climb, it is just a matter of time before LFTB returns to the market. He said given the media disinformation campaign which led to LFTB’s fall from grace early this year, its producers have some work to do before the product will be introduced. He says producers are re-evaluating their production methods and will need to mount advertising campaigns before LFTB is returned to the marketplace.
You'll find a related story about Don Close's analysis of LFTB and its place in the market by clicking here.
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