What is Consumer Demand for Beef

What is Consumer Demand for Beef

What is consumer demand for beef and how long before there is herd expansion? After the break, we will visit with an economist who shares his answers, I’m KayDee Gilkey with Open Range.

Scott Brown, Assistant Professor at the University of Missouri’s Food and Agricultural Policy and Research Institute, shares the demand picture for beef.

Brown: “We’ve certainly seen some good recovery here as we’ve come back out of the economic downturn. Prices moving higher, consumers demanding more high quality beef products. So I think the news has gotten a lot brighter the last few months.”

When do you predict beef cattle herds to turn to expansion?

Brown: “Well I think that at this point, we’re easily two to three years away from talking about serious herd expansion. Of course, weather is going to play a critical role I think as we go through 2012. Certainly from a cattle price side, cattle prices are going remain at or near record highs for the foreseeable future but getting that herd expansion is going to take time. Given what those heifers may be worth other than going into the herd, that may prolong some recovery as well.”

Brown says with lower cattle numbers, quality becomes even more important.

Brown: “I always say anything you can do to put a better product in front of consumers whether it is consumers in this country or around the world is nothing but a win. And I think we have an opportunity to use a lot of tools that are already in place for cattle producers today.”

I’m KayDee Gilkey with Open Range on the Ag Information Network.