News

Economist says high beef prices could be starting to shift consumer demand to other proteins

A livestock economist says high retail prices for beef could be impacting the proteins consumers purchase. University of Kentucky’s Kenny Burdine says, “The last few weeks have probably pointed that way more than anything I’ve seen in a while.” 

The price of choice boxed beef, the wholesale value of beef cuts sold by packers that is often used as a benchmark for beef demand, has dropped about $30 per hundredweight in the last three weeks.   

He tells Brownfield some of that is seasonal. “But we’re seeing more than just that,” he says.  “We’ve taken between $20 and $25, in the same three weeks off of fed cattle prices, off of the current or the August live cattle futures, and really the August feeder cattle futures too.” 

He says fuel prices have also been ticking higher following escalating tensions between the U.S. and Iran. “I think it certainly added some volatility and increased values or prices of these fuels, and that, probably plays into this demand discussion some as well,” he says.  “It’s certainly not a positive factor, but it’s something else we’re dealing with here in the meat sector.” 

Burdine says it could be a good time for producers to reevaluate production costs and consider additional risk management tools.