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Agricultural News

Glynn Tonsor Says 2015 Will Continue to See Strong Demand for Meat and Poultry Sectors

Mon, 12 Jan 2015 11:38:16 CST

Glynn Tonsor Says 2015 Will Continue to See Strong Demand for Meat and Poultry Sectors An expanding supply and strong demand for meat and poultry will create a positive outlook for future livestock markets, according to Dr. Glynn Tonsor, associate professor in the Department of Agricultural Economics at Kansas State University. Tonsor presented to farmers and ranchers from across the country during a featured workshop on the livestock market outlook at the American Farm Bureau Federation's 96th Annual Convention and IDEAg Trade Show.

In advance of his presentation, Farm Director Ron Hays talked with Dr. Tonsor about the markets as the industry transitions into 2015. Click on the LISTEN BAR below to hear their conversation.

"The meat-to-feed price ratios will be very attractive, which will create a multi-year period of industry expansion," Tonsor said. Producers can look for an expansion in pork sooner than in beef, but an overall increase in U.S. red meat and poultry will occur in the first quarter of 2015, according to projections. Tonsor also mentioned that global demand for meat provides a long list of reasons to be confident.

Certain circumstances in the U.S. could have effects that push the market in either direction. Changes in the economy like lower gas prices and perhaps wage increases could allow for additional expendable income for consumers to spend on protein, yet the impact of pork diseases such as porcine epidemic diarrhea virus and porcine reproductive and respiratory syndrome as well as pasture and range conditions have not yet been fully determined, Tonsor said.

Key political issues to keep an eye on that could have major effects on livestock markets include country of origin labeling, international poultry trade bans, a second beef checkoff and public acceptance of scientific advancements, he pointed out.

Tonsor ended his presentation by challenging producers to understand that the livestock industry is constantly changing.

"This is not your father's world anymore," Tonsor said. "Recognize what it is going to be like to be a producer in the coming years because it is going to be different."


Ron Hays talks beef cattle markets with Dr. Glynn Tonsor of Kansas State at AFBF in San Diego
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