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Consumer demand and the impacts of the broader economy

An ag economist says there are concerns the combination of high fuel prices and rising food costs could hinder consumer demand.

University of Missouri’s Scott Brown says the number crowds out some consumers out much more quickly.  “We want to be in a situation where they can afford to continue consumption of beef and pork products,” he says.  “

Supplies of beef and pork continue to tighten, but so far consumer demand has remained strong.  Brown says that doesn’t bode well for prices at the grocery store.  “We likely continue to get higher prices going forward for consumers,” he says.  “Not lower.”

He tells Brownfield there are some worries the general economy is slowing, however, the jobs report doesn’t really suggest that we’re seeing a whole lot of reduction in new jobs that are available.  “Hopefully that means stronger demand,” he says. 

Brown says the Department of Labor added 431,000 jobs in March and the Unemployment Rate fell to 3.6%.