5-10 IAN Meat Prices High

 WHETHER YOU CONSIDER THE LATEST NEWS ON MEAT PRICES GOOD NEWS OR BAD NEWS REALLY DEPENDS ON WHICH SIDE OF THE MEAT COUNTER YOU’RE STANDING. “THE OUTLOOK FOR MEAT PRICES IS, FROM A LIVESTOCK PRODUCER PERSPECTIVE, MORE POSITIVE THAN IT’S BEEN IN A LONG TIME.  WE ARE EXPECTING FAIRLY HIGH LIVESTOCK PRICES AND THAT WOULD TRANSLATE TO HIGHER PRICES AT THE MEAT COUNTER.  A LOT OF PEOPLE ARE SAYING THAT WE MAY SEE RECORD MEAT PRICES IN SUMMER OF 2010. “

 AMERICAN FARM BUREAU LIVESTOCK ECONOMIST JOHN ANDERSON SAYS THE REASONS BEHIND THE INCREASES GO ALL THE WAY BACK TO 2008. “WE HAD VERY HIGH COSTS OF PRODUCTION IN 2008.  WE SAW GRAIN PRICES HIT RECORD LEVELS IN 2008.  THAT AFFECTS FEED COSTS.  WE ALSO HAD RECORD HIGH ENERGY PRICES.  REMEMBER WE HAD OIL PRICES HITTING ASTRONOMICAL LEVELS.  ENERGY COSTS AFFECT A LOT OF DIFFERENT ASPECTS OF THE COSTS OF PRODUCTION. 2009, IT’S HARD TO REALLY OVERSTATE HOW DIFFICULT THAT PERIOD WAS FOR LIVESTOCK AND POULTRY PRODUCERS AND SO THEY LOST A LOT OF EQUITY, WENT THROUGH A VERY DIFFICULT TIME. “

BECAUSE PRODUCTION COSTS WERE SO HIGH AND MEAT PRICES WERE SO COMPARATIVELY LOW, MANY FARMERS AND RANCHERS WENT OUT OF BUSINESS AND MANY OTHERS CUT BACK THE NUMBER OF COWS, HOGS OR CHICKENS THEY HAD TO FEED.  SO NOW, SUPPLIES ARE LOWER AND THE PRICES ARE GOING BACK UP.