Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
    
   
   
   
   

Beef Buzz News


Economist Glynn Tonsor Addresses Recession Rumors, Why that Should Concern Cattle Producers

Wed, 09 Jan 2019 10:20:18 CST

Economist Glynn Tonsor Addresses Recession Rumors, Why that Should Concern Cattle Producers In these early days of 2019, it is a good time to stop and take stock of where the beef industry is currently in regard to the economics of beef production. According to Kansas State University Ag-Economist Dr. Glynn Tonsor, things have gone well for the beef industry as far as consumer demand goes. And that, he says, has not just been the case for this last year - but the last several years.


“We’ve had a very positive beef demand environment both domestically and abroad, pretty much since 2010. It’s been several years since we’ve had something as adverse as the Great Recession,” Tonsor said, alluding to recent speculations of a possible economic downturn in the near future. “I’m not forecasting that’s going to happen again, but I do think it’s prudent for us to remember what happens in a recession - beef demand tends to take a notable hit… Beef is an expensive item that is sensitive to macroeconomics. When we have a recession, it’s likely we’ll have a demand pullback.”


Tonsor continues to explain that over time, the beef industry has become more and more complex; further intertwined with the export market and has developed greater dependence on foreign demand. This has resulted in increased sensitivity to the macroeconomics of not just in the US, but globally. Several factors at play in the marketplace, now have a significant impact on beef demand and transitively on the price of beef and cattle which ultimately affects producers’ bottom line. Right now, uncertainty pertaining to the stock market and the continued strength of the US and global economies are all things Tonsor says producers should be paying attention to moving forward. What has influenced markets recently as well and will continue to until resolved, are ongoing efforts by the Trump Administration to negotiate new terms of trade with some of our nation’s major partners in commerce, like China, Mexico and Canada. Not to mention the complications of resulting retaliatory tariffs that earlier this year launch an all-out trade war. But, despite all the perceived negative pressure that exists, Tonsor admits that beef demand has outperformed most people’s expectations - though he warns not to take for granted the success of recent years as the industry hopes to make a repeat of last year’s accomplishments in 2019.


“I think there are ongoing challenges there, but quite honestly I think the pressure is more outside of beef. But, we need to recognize this remains at risk and parts of the complex are picking up on that now,” he said. “It can be very confusing, but we are in a very globally connected world and any of the uncertainty on our ability to export those products and get the highest value for it is increasingly important for us to monitor.”


Listen to Tonsors’ full discussion over the increasingly complex nature of the beef market, with Radio Oklahoma Ag Network Farm Director Ron Hays, on today’s Beef Buzz.


The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is 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.



   




   

Hear Tonsors' full discussion over the increasingly complex nature of the beef market, on today's show
right-click to download mp3

 

WebReadyTM Powered by WireReady® NSI

 

Beef News

  • CattleFax Leader Predicts Higher Calf Prices In Coming Months  Fri, 25 Sep 2020 08:04:07 CDT
  • OSU's Dr. Derrell Peel Says Livestock Markets Have Recovered From The Pandemic As Producers Now Hope For Good Winter Wheat Pasture  Thu, 24 Sep 2020 08:22:07 CDT
  • Ultra-High Frequency Technology Allows For Fast, Easy Cattle Traceability, Says Callahan Grund With U.S. CattleTrace  Wed, 23 Sep 2020 08:46:07 CDT
  • U.S. CattleTrace Is a New Organization Focused On Beef Cattle Traceability  Tue, 22 Sep 2020 09:03:14 CDT
  • Danielle Beck, NCBA, Explains How Cattle Producers Can Receive Round Two CFAP Payments  Mon, 21 Sep 2020 08:39:44 CDT
  • Cattle Herds Are Shrinking And Intensifying Focus On Packer Capacity, Says Randy Blach With CattleFax  Fri, 18 Sep 2020 08:12:07 CDT
  • Cattle Industry Has Made a Remarkable Adjustment To Pandemic, Says Randy Blach, CattleFax CEO  Thu, 17 Sep 2020 08:33:03 CDT
  • Understanding Price Discovery Is The Key To Improving It Says Texas A&M Economist David Anderson  Wed, 16 Sep 2020 08:26:54 CDT
  • No FMD In United States Since 1929 But Iowa State's Dr. Danelle Bickett-Weddle Says We Must Be Prepared For An Outbreak  Tue, 15 Sep 2020 09:45:10 CDT
  • CARES Act Stimulus Payments Could Be Helping Increase Beef Demand Says KSU's Dr. Glynn Tonsor  Mon, 14 Sep 2020 08:16:00 CDT
  • Uncertainty Is How KSU Extension Livestock Economist Dr. Glynn Tonsor Describes Current Cattle Market  Fri, 11 Sep 2020 08:48:49 CDT
  • The World Population Still Eating Beef Despite Pandemic Says USMEF's Dan Halstrom  Thu, 10 Sep 2020 08:27:19 CDT
  • Demand Remains Strong For U.S. Beef Exports, Says Dan Halstrom, USMEF President And CEO  Wed, 09 Sep 2020 08:08:52 CDT
  • Beef Producers Should Have A Biosecurity Plan, Says OSU Veterinarian Dr. Rosslyn Biggs  Tue, 08 Sep 2020 07:45:25 CDT
  • OSU Extension Livestock Economist Dr. Derrell Peel Says Conditions Exist For Good Profit Margins For Grazing Stocker Calves On Wheat Pasture This Year  Fri, 04 Sep 2020 08:23:52 CDT
  • Meat Packing Industry Needs To Add About 6,000 Head To Daily Capacity, Says Dustin Aherin, Rabo AgriFinance  Thu, 03 Sep 2020 08:42:00 CDT
  • Beef Exports Are Valuable For U.S. Producers Says CattleFax's Randy Blach  Wed, 02 Sep 2020 09:27:50 CDT
  • CattleFax CEO Randy Blach Says Beef Demand Has Dramatically Improved In The Past 20 Years  Mon, 31 Aug 2020 08:20:48 CDT
  • Great American Outdoor Act a Federal Land Grab, Says Kaitlyn Glover With NCBA And PLC  Fri, 28 Aug 2020 08:49:21 CDT
  • Great American Outdoor Act a Federal Land Grab, Says Kaitlyn Glover With NCBA And PLC  Fri, 28 Aug 2020 08:35:50 CDT
  • Elanco's Sara Place Says Converting To a Vegan Diet Would Not Improve The Environment  Thu, 27 Aug 2020 08:17:10 CDT
  • Cattle Are Part of The Solution, Not Part of The Problem, Explains Dr. Sara Place, Elanco Animal Health  Wed, 26 Aug 2020 08:03:54 CDT
  • Dan Halstrom, USMEF, Expects U.S. Beef Exports To Increase in Late 2020  Tue, 25 Aug 2020 07:41:48 CDT
  • Latest Cattle On Feed Report Shows Higher Than Expected Placements And OSU's Dr. Peel Says This Could Mean We've Worked Through The Cattle Backlog  Mon, 24 Aug 2020 07:57:48 CDT
  • California Judge Surprisingly Rules In Favor Of Trump Water Rule, Thus Supporting Agriculture, Says NCBA's Scott Yager  Fri, 21 Aug 2020 08:46:48 CDT
  • Trump Water Rule Now Being Contested In Court, Forcing NCBA To Defend Government Rule, Says NCBA's Scott Yager  Thu, 20 Aug 2020 09:09:54 CDT
  • LMIC's Katelyn McCullock Projects Better Returns For Cattle Feeders Later This Year  Wed, 19 Aug 2020 08:22:39 CDT
  • Input From Cattle Producers Critical For Meeting Goals of The U.S. Roundtable For Sustainable Beef  Tue, 18 Aug 2020 08:58:48 CDT
  • The U.S. Roundtable for Sustainable Beef Provides a Framework For Producers To Be Profitable For The Long-Term Says Past Chair Ben Weinheimer  Mon, 17 Aug 2020 09:45:11 CDT
  • NCBA's Kent Bacus Explains Why We Need To Import Small Amounts Of Beef  Fri, 14 Aug 2020 11:36:29 CDT
  • For US Cattle Producers- China Still Offers Huge Potential- So Says NCBA's Kent Bacus  Thu, 13 Aug 2020 14:23:21 CDT
  • NCBA's Kent Bacus Optimistic 2020 Will Be A Good Year For U.S. Beef Exports  Wed, 12 Aug 2020 09:19:20 CDT
  • OUS's Dr. Derrell Peel Prefers The Word "Stability" Instead of "Normal" When Referencing The Climb To Better Cattle Prices  Tue, 11 Aug 2020 08:12:20 CDT
  • NCBA's Danielle Beck Encourages Producers to Submit Comments on Dietary Guidelines Before Aug. 13 Deadline   Mon, 10 Aug 2020 08:48:20 CDT
  • Ag Exemption For ELD Rule Expires Sept. 30 And NCBA's Allison Rivera Explains How They Are Working To Extend Exemption  Fri, 07 Aug 2020 09:11:21 CDT

  •  

    Beef Buzz Archives

    Old Archives  |   2010  |   2011  |   2012  |   2013  |   2014  |   2015  |   2016  |   2017  |   2018  |   2019  |   Jan 20  |   Feb 20  |   Mar 20  |   Apr 20  |   May 20  |   Jun 20  |   Jul 20  |   Aug 20  |   Sep 20  |   Oct 20  |   Nov 20  |   Dec 20
        

    Ron salutes our daily email sponsors!

    Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show AFR Insurance Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.

    Our Road to Rural Prosperity sponsors!

    Banc First OPSRC ORWA TPAOO TPAOO

    Search OklahomaFarmReport.com


       
       
    © 2008-2020 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.