Beef Buzz News
Beef Demand Index Up Substantially Despite High Prices
Fri, 15 Aug 2014 13:05:29 CDT
Ron Hays Beef Buzzes with Dr. Glynn Tonsor
Tight supplies of cattle in the US has give the industry high cattle prices, but also record high retail beef prices. Despite the higher cost the consumer appetite for US beef remains remarkably strong. Kansas State University Extension Livestock Market Economist Dr. Glynn Tonsor released his latest beef demand quarterly index. The latest report for April - June show the numbers would suggest that high prices have not kept consumers away from beef with the beef demand index up six to seven percent depending on the category.
"The all fresh beef demand, which is the broadest, was up six point seven percent compared to the second quarter of 2013," Tonsor said. "That is the largest year over year increase we have had since the end of 2004."
Radio Oklahoma Network Farm News Director Ron Hays featured Dr Tonsor on today's Beef Buzz. You can hear their full conversation by tapping on the LISTEN BAR below.
That year was in the midst of the Atkins diet craze that pushed more Americans to eat more protein. Tonsor said this time he doesn't think the Atkins diet or any other fad is driving the current demand strength.
"In general we know we have fewer pounds being offered to the consumer, that's because we are producing less," Tonsor said. "...but what's underneath that large year over year increase in demand...is that the price that the public has been willing to pay for those fewer pounds has exceeded most of our expectations."
This willingness to pay these higher prices has caught many off guard. Dr. Tonsor admits he was surprised by it as well.
"We know price is going to go up if demand is anywhere near stable and it has went up more than we anticipate," Tonsor said. "That's a very strong supportive story for the industry, because nobody is making anyone pay those higher prices."
Consumer are being asked to buy beef with fewer pounds available, but at the end of the day Tonsor said its market equilibrium working where people are voluntarily paying higher prices than we expected them to.
"They inherently are seeing more different value or their incomes or willingness to share those dollars is better than we anticipated," Tonsor said.
Beef supplies are going to remain tight through 2014 with maybe some turn around by 2016. Tonsor suggested the current demand trend bodes well for the future of the beef cattle sector.
"Ultimately that demand pull is what drives prosperity for the industry," Tonsor said. "Tight supply is important and I don't want to ignore that and that is a lot of what is going on today, but you can't just have tight supply without strong demand otherwise you will continue to have tight supply, we'll keep shrinking the industry right and we will benefit short term, but not long term."
"Long term there has to be more money entering the industry from a demand pull that consumers see value in that beef and at least for the second quarter of 2014 the numbers show that is going on and I remain optimistic going forward," Tonsor said.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Producers Face Many Considerations as Feeder Markets Come Under Pressure of Rising Feed Costs Wed, 17 Jul 2019 11:04:44 CDT
OSU Market Watcher Derrell Peel Shares His Observations from the Countryside on the Cattle Industry Tue, 16 Jul 2019 09:57:41 CDT
R-CALF CEO Bill Bullard in Oklahoma to Promote a Pro-MCOOL Message to Local Beef Producers Mon, 15 Jul 2019 11:31:25 CDT
Greenhouse Gas Guru, Mitloehner, Says Cow-Fart Protestors Spread More Manure than Beef Industry Fri, 12 Jul 2019 14:15:28 CDT
LMIC's Jim Robb Says US Beef Exports Finally Catch Up to Speed While Imports are Larger Than Expected Thu, 11 Jul 2019 10:39:43 CDT
Boxed-Beef Trade's Surprising Performance Underpinning Current Strength in the Marketplace Wed, 10 Jul 2019 10:28:23 CDT
New Web-Based Sire Selection Tool Promises Easier Decision-Making with Herd Specific Optimization Tue, 09 Jul 2019 10:25:26 CDT
Feeling Buried by All the EPDs Out There? University of Nebraska's Matt Spangler May be Able to Help Mon, 08 Jul 2019 11:54:46 CDT
What Do Consumers Really Think About Beef? They Love It... They Just Don't Know Much About It Fri, 05 Jul 2019 10:32:55 CDT
NCBA's Head of Market Research Rick Husted Talks Consumer Perceptions of Beef and Beef Production Wed, 03 Jul 2019 10:24:30 CDT
Industry Association Spearheads Effort to Create Recovery Tool for Producers Victim of Dealer Default Tue, 02 Jul 2019 10:34:22 CDT
BQA Program Continues to Benefit, Improve US Beef Industry as More Producers Commit to Quality Fri, 28 Jun 2019 10:21:34 CDT
Ag Economist Glynn Tonsor Expects Strong Market Reaction if Positive Movement Made in Trade Talks Thu, 27 Jun 2019 11:06:12 CDT
While Not a Market Mover, Latest On Feed Report Does Not Bode Well For Feeders' Bottom Lines Wed, 26 Jun 2019 11:13:34 CDT
Oklahoma National Stockyard's First Female General Manager Kelli Payne Showcases Market's Historical Significance Tue, 25 Jun 2019 10:53:50 CDT
Secure Food Supply Plans Allow Farmers and Ranchers to Take Biosecurity into Their Own Hands Mon, 24 Jun 2019 12:22:48 CDT
RMA's Haying and Grazing Date Adjustment Good News for Cattle Producers Badly in Need of Forages Fri, 21 Jun 2019 11:40:04 CDT
NCBA's Scott Yager Touts Livestock Producers' Regulatory Relief from Superfund Law Under FARM Act Thu, 20 Jun 2019 11:07:36 CDT
Market Watcher Derrell Peel Shares His Advice on How to Build Your Strategy Around Market's Mounting Volatility Wed, 19 Jun 2019 10:05:52 CDT
Prospect of Higher Feed Costs Generating Both Challenges and Opportunities for Cattle Producers Tue, 18 Jun 2019 11:01:21 CDT
Beef Industry Experts Don Close and Kent Bacus Explain Why Mandatory Labelling Isn't So "COOL" After All Mon, 17 Jun 2019 11:36:49 CDT
Rabo Agrifinance’s Don Close Shares His Top Four “Unknown Unknowns” of the Beef Industry in 2019 Fri, 14 Jun 2019 09:29:13 CDT
Despite Minor Declines, US Beef Export Business Continues to Perform Well as Fringe Markets Grow Thu, 13 Jun 2019 13:19:37 CDT
Cattle Market Under Pressure as Corn Plantings Continue to Struggle, Adding to Price Weakness Wed, 12 Jun 2019 11:07:37 CDT
Government Cracks Down on Sue and Settle Tactics Employed by Environmental Activist Groups Tue, 11 Jun 2019 10:28:55 CDT
Industry Has Its Work Cut Out for Itself as Wildlife Service Weighs Listing the Lesser Prairie Chicken Mon, 10 Jun 2019 11:19:40 CDT
NCBA's Colin Woodall Calls Out Misconceptions About Fake Meat's Claims of 'Zero-Sum' Production Fri, 07 Jun 2019 10:49:24 CDT
Donnell Brown Proclaims Efficiency the Next Great Frontier, Genomic Enhancement will Get Us There Thu, 06 Jun 2019 09:53:06 CDT
Generational Transfer Happens Whether We're Prepared for it or Not - So Why Not Plan Ahead Now Wed, 05 Jun 2019 09:42:15 CDT
Food Industry Leader John Patrick Lopez Says Sharing Agriculture's Story is Everyone's Responsibility Tue, 04 Jun 2019 10:15:01 CDT
OKC-Based Processor Behind McDonald's Non-Frozen Beef Menu Brings Chain Some Fresh Sizzle Mon, 03 Jun 2019 11:57:26 CDT
China's African Swine Fever Problem Largely Seen as a Positive for US Ag- But What's the Downside Fri, 31 May 2019 10:20:36 CDT
Angus Dollar Value Index Upgraded to Meet Today's Economic Conditions, Dan Moser Explains Thu, 30 May 2019 10:59:45 CDT
Greenhouse Gas Guru, Mitloehner, Says Cow-Fart Protestors Spread More Manure than Beef Industry Wed, 29 May 2019 09:40:47 CDT
USDA Reports Highest May 1 Inventory of Cattle on Feed Since '96 - Derrell Peel Shares His Analysis Tue, 28 May 2019 10:21:29 CDT