Will "Populist" Attitudes Threaten the Beef Industry’s Success of Gaining Global Marketshare?Thu, 27 Apr 2017 12:19:54 CDT
Over the last several months, the Cattle on Feed reports from the US Department of Agriculture have indicated higher placements numbers in cattle country, but just as importantly, they have shown high marketings as well. Extension Livestock Market Economist Glynn Tonsor says this is a good signal that beef demand is relatively strong in both domestic and international markets, while feedlots also stay very current. He told Radio Oklahoma Ag Network Farm Director Ron Hays that more attention should be paid right now to the opportunities arising in the global marketplace in order to sustain this momentum.
“We do have an opportunity on the global front. Australia is not producing and exporting as much as before, so there’s some positive leverage there,” he said, adding that China’s promises to reopen their doors to US beef also lends an optimistic tone. “And that’s with a US dollar that is far from low.”
Perhaps not week to week, Tonsor says, but overall he remains fairly optimistic about what the future holds for the beef industry when it comes to trade. However, he asserts that those negotiating the trade deals amidst all the opportunity for market expansion, need to gain a better understanding of the value being presented in the marketplace through what he calls, “derived demand.” He refers to a growing “populist” attitude towards global trade, insisting that we should be careful ‘not to shoot ourselves in the foot.’
“I think it’s very important producers recognize that there’s a lot of embedded value in animals today from trade. I would argue that value is only going to grow in the future and I have some concerns that’s not fully appreciated,” Tonsor contended. “I don’t want anybody shooting their toes off - literally or figuratively. And, I honestly think we’re doing a little bit of that in some of the rhetoric around trade - and it concerns me.”
Listen to Tonsor and Hays discuss the market opportunities for beef internationally and his concerns related to that, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is 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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