Production of Protein and Prices
The economics of protein prices... It's still a supply and demand issue.
From a supply standpoint - American Farmers and Ranchers produced a bit more in the first 2 months of the year than was expected.
Kevin Goode with Cattlefax explains.
"Production has been larger than we would've forecast. We're looking for larger supplies all the way across the board and we've seen that plus a little bit start with beef. Beef production through the first two months, the year has been up 4 percent. It's a combination of aggressive harvest levels as well as heavier carcass weights, especially considered compared to last year when we had the weather influenced lighter weights on pork and poultry. Both of those numbers are up 6 to 7 percent. So that's a huge increase year over year from our production standpoint. We would still stand by when this year is all said and done, beef production is gonna be up about 2 percent. We think pork will be up about 2 and a half to 3 percent and broiler production up about 4. So we still got a headwind as we go through a 2020, although we do think that we'll see improvement in trade to offset partial partially some of that increased production."
He tells the NCBA's Cattlemen to Cattlemen - the coronavirus concerns and effect on the market are not helping matters.