Demand for Beef and Pork Holding Strong

Inflation continues to grab headlines, especially with food-at-home prices up more than 13% from last year.

University of Missouri Livestock Economist Scott Brown, says, “Demand for beef and pork has remained strong, and I’m optimistic it will hold.  Lower food prices and some other costs starting to slow, is a positive to me. I’m not saying whether we will or won’t eventually declare ourselves in a recession, but economic slowdown certainly hasn’t taken the shine off meat demand, which is good news for beef and pork producers.  Growing demand is the time I want to be in an industry,” Brown said. 

Choice Beef retail prices dropped $.04 from June to July but were still nearly 24% above pre-COVID levels.  Pork retail prices were up just $.01 from June to July but were 26% above July 2019 prices.

Editor’s Take:

Great to hear a more upbeat forecast from a respected industry observer. Brown is on target when he points out that so far inflation has not put a damper on demand. That said, to the extent inflation abates in the next few months, consumers will purchase even more beef and pork. Thankfully, beef and pork producers have been able to adjust production to a level commensurate with consumer demand, which results in sustainable prices at the farm/ranch level. Look to beef and pork producers in your area as excellent prospects to lease or purchase a new or qualifying used truck and take advantage of your Ace-in-the-Hole – AgPack!