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Domestic demand supporting red meat prices

A livestock economist says the strength in the US economy has helped to keep beef and pork prices relatively strong. 

University of Missouri’s Scott Brown says the economy added 224,000 jobs in June and that’s good news for the domestic market.  “If we hadn’t seen those stronger jobs’ numbers than I think we’d see a situation where there would be less buy-up (lower income consumers purchasing higher quality or more expensive beef) than otherwise, they might not,” he says. 

He tells Brownfield domestic demand growth becomes even more important as net exports have been on the decline this year.  “For May, beef and pork net exports were down 1.5 percent in total,” he says.  “Year-to-date, beef and pork net exports are down 7.6 percent.”

And with US pork production projected to increase 4 percent this year and beef production pegged to increase 1 to 2 percent, Brown says if the economy were to weaken, prices would decline rapidly.