Retail prices are up and that’s good news for livestock producers
Reports indicate strength in domestic demand for beef and pork – and that’s good news for livestock markets.
Consumer confidence is up and so are retail prices for beef and pork. University of Missouri ag economist Scott Brown says that’s good a good sign. “Perhaps we’re starting to see real signals we’re getting stronger growth in the economy companies are willing to create more jobs,” he says. “As a result of that the ball has begun to roll in terms of giving us ultimately better meat demand in this country in 2017. All of that leads to higher retail prices – which is nothing but good for us.”
And he tells Brownfield – the share of the retail price for livestock producers is on the rise. “We’re back up to about 45 percent of the share of the consumer dollar on the beef side,” he says. “Which, I would say is a longer term average for us. Retail demand got stronger and I think packers are willing to bid a little harder for cattle. On the pork side it’s a very similar situation as well. We sit at about 25 percent of the consumer dollar today on the pork side.”
For those levels to maintain or increase – Brown says demand for US meat domestically and globally needs to remain strong.
Your email address will not be published.
Subscribe for our newsletter today and receive relevant news straight to your inbox!