As we celebrate Beef Month in May, it is still easy to see that BEEF is the protein of choice for the American consumer. It just does not sit on the grocery store shelves. It is surely in full demand! From its leanness, convenience, taste & health benefits – and who wouldn’t agree with it cooking up on the grill better than any other option.
As we head into the summer months and onward to fall markets, ranchers and feedlot owners will be faced with several challenges, which is not uncommon to the American beef producer. Will corn prices continue their rise and put a damper on the fed cattle side? Will drought plague a majority of the western US, forcing herd reductions? Will cattle futures prices start to gain momentum early this fall to combat rising inputs and help fortify ranch/feedlot profits before year end?
The end prices to the consumer are at highs right now, but the spread from the “yard” to the plate is wide. Time will tell, but generally speaking, the consumer is and will pay more for the price of beef to consume. It is thought the producer will begin to take part in the higher prices pulled from the end game. It always ends up being a game of chess from both sides, but one thing is for sure, the beef market always lives on future optimism. That “can do” attitude helps drive beef to be the protein of choice.
2021 is shaping up to be the rebuilding year, based on the challenges facing the industry during 2019 through the end of 2020. It is time to rebuild, refocus and rethink 2021. The innovation on all sides: from marketing, to genetics, to feed stuffs continues to change course in an adapting market. The beef industry knows it peaks and valleys, and it sure is about time for a mountain peak market before year end.
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