Post by Glenn on Aug 27, 2012 8:04:56 GMT -6
From The Cattle Report:
>> Beef prices have hit historic highs recently and retail stores have little hope of bringing beef prices down in the foreseeable future. The implications for beef consumption is obvious. If we sell less beef then consumption per person will be down. More important to the long term for beef producers is beef's role in the diet.
Beef has long remained the centerpiece of the plate for consumers. It is and has been the preferred meat. Most all other competing meats fail in the area of repetitive satisfaction. You can only eat chicken or pork so many times a week without tiring of the taste. Beef offers flexibility of cuts and preparation. This diversity has kept it at the top of the check out sales leaders in the supermarket.
Unfortunately for beef producers, high prices does not translate into profits for the industry. The beef business is in crisis mode threatened from drought, high feed costs, overregulation and fragile consumer demand. Overlaying all of these problems is the looming concern of the long term place of beef in the diet.
Consumers will modify their diets as supplies of beef dwindle in the coming months. Price of meat will be important for a stressed economy with high unemployment and rising gasoline prices. While all meat prices will rise, beef will be particularly hard hit after two years of drought affecting almost all the country. Cattle numbers are in major decline and there are few to no signs of a recovery.
At the cutout level, the spreads between beef and chicken/pork is trending unfavorable to beef. This will encourage retail stores to feature more chicken and pork. The danger for the beef industry is a long term change in diet choices for consumers.
Beef processors advanced the slaughter this past week to 654,000 cattle - a large number for this year. Processing margins are very good and beef plants want to process all they can. All they can will be changing. Cow slaughter has been well under last year and will continue well under last year. Steer and heifer slaughter also is under last year and will hold that pattern in future weeks and months.
Historically, box prices have declined following Labor day then recovered in October. Most private forecasters are calling for lower box prices but fed supplies and cull cow numbers will remain tight. Foremost on the beef agenda is not losing sight of the front burner issue of holding the center of the plate in the households of this country.<<
>> Beef prices have hit historic highs recently and retail stores have little hope of bringing beef prices down in the foreseeable future. The implications for beef consumption is obvious. If we sell less beef then consumption per person will be down. More important to the long term for beef producers is beef's role in the diet.
Beef has long remained the centerpiece of the plate for consumers. It is and has been the preferred meat. Most all other competing meats fail in the area of repetitive satisfaction. You can only eat chicken or pork so many times a week without tiring of the taste. Beef offers flexibility of cuts and preparation. This diversity has kept it at the top of the check out sales leaders in the supermarket.
Unfortunately for beef producers, high prices does not translate into profits for the industry. The beef business is in crisis mode threatened from drought, high feed costs, overregulation and fragile consumer demand. Overlaying all of these problems is the looming concern of the long term place of beef in the diet.
Consumers will modify their diets as supplies of beef dwindle in the coming months. Price of meat will be important for a stressed economy with high unemployment and rising gasoline prices. While all meat prices will rise, beef will be particularly hard hit after two years of drought affecting almost all the country. Cattle numbers are in major decline and there are few to no signs of a recovery.
At the cutout level, the spreads between beef and chicken/pork is trending unfavorable to beef. This will encourage retail stores to feature more chicken and pork. The danger for the beef industry is a long term change in diet choices for consumers.
Beef processors advanced the slaughter this past week to 654,000 cattle - a large number for this year. Processing margins are very good and beef plants want to process all they can. All they can will be changing. Cow slaughter has been well under last year and will continue well under last year. Steer and heifer slaughter also is under last year and will hold that pattern in future weeks and months.
Historically, box prices have declined following Labor day then recovered in October. Most private forecasters are calling for lower box prices but fed supplies and cull cow numbers will remain tight. Foremost on the beef agenda is not losing sight of the front burner issue of holding the center of the plate in the households of this country.<<