Glynn Tonsor Optimistic for Strong Cattle Prices in 2015Mon, 19 Jan 2015 14:37:07 CST
The past year was one for the record books for cattle producers. Radio Oklahoma Network Farm Director Ron Hays caught up with Kansas State University Associate Professor of Agricultural Economics Dr. Glynn Tonsor at the recent American Farm Bureau Federation Annual Convention in San Diego. Click or tap on the LISTENBAR below to listen to the full Beef Buzz feature.
Tonsor said 2014 was record breaking for cow-calf producers who sold cattle this past year. Looking ahead to 2015, he said the year looks to just as promising as he looks for these strong prices to stay in place for a couple of years, but the positive outlook will depend on meat demand.
"It's important as we look at 2014 to recognize that both tight supply and strong demand gave us those record level prices," Tonsor said. "-.It's a very good time to be in the cattle business."
In looking back at 2014, Tonsor and other economists would have expected there was a price ceiling for beef. He thought consumers would have traded down for less expensive beef products more than they did.
"That's a very positive thing for the beef industry," Tonsor said. "There is more loyalty, there is more value seen in those products and quite frankly the public has been willing to open up their wallet more than we anticipated."
In addressing the reality of the situation, Tonsor said it's important everyone recognizes there was fewer beef pounds offered and the big unknown was how much consumers would be willing to pay. As a result there were much higher prices in 2014 than what was expected. Tonsor said that needs to continue into 2015, 2016 and forward to maintain profitability.
In 2015, beef will have more competition from pork and poultry as those sectors have increased their production thus lowering their prices. It too early to know how price sensitive consumers will be this year or how much consumers will substitute pork or chicken for beef. Tonsor said that makes it more important that the beef industry monitors those changes and be responsive to consumers this year and for years to come.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also 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.
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