Beef Demand Leaps 15.5 Percent in First Quarter 2015Tue, 05 May 2015 12:22:40 CDT
Over the last several years, beef demand has been measured on a quarterly basis. Most quarters have shown beef demand has exceeded year ago levels. Kansas State University Agricultural Economist Glynn Tonsor said beef demand for the first quarter of 2015 was exceptionally strong compared to one year ago with demand up 15.5 percent relative to the first quarter of 2014.
"That is by far the largest year-over-year increase for any one quarter in this series that goes back to 1990," Tonsor said.
Beef demand has increased for the past four years with demand up 18 of the last 19 quarters. Tonsor said that is an incredibly long run for the beef industry.
Per capita consumption increased ever-so-slightly during the first three months of the year, while beef prices increased nearly 13.5 percent compared to 2014 levels.
"While the change in consumption was small, it is imperative to note both prices and consumption volume increase only if beef demand improves," Tonsor said.
With the public willing to pay for beef than anticipated, Tonsor said that is half of the equation on why there are historically high cattle prices. The industry has known for several years the tight supply situation. Beef demand has also shown improvement for the last several years. With tight supplies and strong beef demand, he said they both pull upward on retail and wholesale beef prices, which also pushes up prices for fed and feeder cattle. Tonsor said the entire beef industry is benefiting from the unique situation.
Radio Oklahoma Network Farm Director Ron Hays featured Tonsor on the Beef Buzz. Click or tap on the LISTEN BAR below to listen to today's Beef Buzz.
Click here to read more from Glynn Tonsor on the detailed demand indices.
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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