Beef Buzz News
OSU's Derrell Peel Says Beef Demand Is A Complex Equation
Mon, 13 Jul 2020 09:18:56 CDT
The complicated world of beef demand was a hot topic before the pandemic hit and has since become even more discussed among both consumers and economists. Dr. Derrell Peel, OSU Extension livestock market economist explains a recent demand research study in today's Beef Buzz with Radio Oklahoma Ag Network Farm Director Ron Hays.
Ron Hays Beef Buzzes With Derrell Peel
Dr. Peel has long studied the issue of beef demand, looking at it from a variety of angles.
We've probably tried to make it too simple in the past, Peel said.
Beef is lots of different products and consumers don't buy beef in a generic sense but rather buy specific beef products, Peel said.
At the point of purchase, they are looking at a specific beef product, Peel said.
We really don't have a good understanding of that because we don't have the data, Peel said.
One of the factors complicating demand is that thousands of different products come from a single carcass.
The packing plants have product codes for several thousand products, Peel said.
What we often overlook is that further processing adds more layers of complexity. For example, at a restaurant, the steak comes out cut to a certain weight and size and everyone does it different, Peel said.
So, Peel said a few thousand products turns into even more products.
If you cut a steak a little different you get trim and that trim goes into another market so there is just an amazing amount of complexity, Peel said.
This complexity makes the economics of the beef industry unique, Peel said, because we're taking a complex input, the animal, and marketing it through thousands of different final markets.
The more we do with this these things the more opportunities we have for even more markets, Peel said.
The bottom line is beef demand is a complex equation.
Click on the LISTEN BAR below to hear more of Ron's interview with Dr. Peel.
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.
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