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Meat processor sees stable demand despite increased prices

The president of the Illinois Meat Processors Association says consumer demand for pork and beef remains strong despite continued high prices.

Buddy Raber, who owns Raber Packing Company in Peoria, says the elevated market is keeping many producers cautious.

“You know, a year ago I would have told guys not to buy feeder calves because there’s no way they’re going to make money.”  He says, “I was wrong. This is as simple as like the hot potato game when you’re a kid, at some point, somebody’s getting stuck with the hot potato.”

He recently told a roundtable discussion hosted by the National Farmers Union that retail beef prices reflect the market, but they aren’t slowing down consumers.

“The high prices, like we really haven’t got hit that hard yet.”  He says, “I thought it was going to come this week with 4th of July coming up. The stuff really didn’t go up that much, like ribeyes didn’t go up that much.  Grinding material did, but like the consumer still buys the ribeyes every week.  Father’s Day, you know, we sold $25,000 –  $30,000 in just ribeye steaks.”

Raber says pork prices have come up a bit recently, but relatively lower feed prices add some stability for both industries.