LMIC's Jim Robb Highlights the Dynamics that Supported Better Than Expected Cattle Markets in '17Mon, 08 Jan 2018 11:37:11 CST
Radio Oklahoma Ag Network Farm Director Ron Hays recently looked back on 2017 with Jim Robb of the Livestock Marketing Information Center, who says this past year turned out to perform much better than most in the agriculture industry would have anticipated.
“It turned out to be a year where, especially in the Fourth Quarter of 2017, the market was stronger than anticipated on the cattle side, supported by a stronger than anticipated beef market,” Robb said. “The wholesale beef market was really the driver behind that. Everything went right that we could have imagined in 2017 compared to 2016.”
According to Robb, demand for beef significantly outpaced predictions both domestically and internationally, particularly in the Asian markets like South Korea where he says the beef industry made deep inroads with this past year, taking away some of its market share from Australia. The fact that export levels stayed consistently stable throughout year, certainly impressed Robb, compared to other protein products that struggled during the summer months. Even in spite of new tariffs on some beef exports to Japan, that market showed remarkable resilience in 2017 - and enjoyed a strong economy for the first year in many, as mirrored in the US where he says domestic grocers played the beef market to their mutual advantage, featuring beef products up until the week before Thanksgiving.
“Looks like a record year,” he said. “We anticipated a good year but the price we’ve been able to sell the product for has certainly added more than we thought to the total value of beef exports. Plus, demand coming from the retail sector was very competitive and was a key component to the demand for wholesale beef to be strong - which then fed through to packers’ demand for cattle, fed cattle being strong - and came right back to calf and yearling prices.”
Listen to Robb and Hays reflect on the dynamics that factored into the better than anticipated cattle market of this past year, 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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