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Demand needed for big supplies of beef

A livestock market analyst says big supplies of beef in 2017 will need support from an increase in demand.

Oklahoma State University’s Derrell Peel says as retail prices for beef decline in the domestic market the demand for beef will increase.  “If it does that quickly enough and sufficiently – then we may not see a lot more price pressure,” he says.  “Even though we will see bigger supplies in 2017.”

He tells Brownfield exports are also part of the demand picture for beef next year.  “Even though they are small at the margin – still 10 to 11 percent of total production,” he says.  “They will play a key role not only in moving some of the additional beef production off shore in terms of a quantity issue, but also, exports play a very important role in the kinds of products and specific products that get exported.  And that complements US demand.”

Peel says the role of exports and trade is to place products in a market where their value is highest.

AUDIO: Derrell Peel, Oklahoma State University