Oklahoma's Latest Farm
And Ranch News

Your Update from Ron Hays of RON
Tuesday, November 17, 2020
Dr. Derrell Peel on the Current State of Beef Demand  
Mondays, Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry. This analysis is a part of the weekly series known as the "Cow Calf Corner" published electronically by Dr. Peel and Glenn Selk. Today, Dr. Peel examines the current state of beef demand.

By many measures, beef demand has remained remarkably strong since the pandemic started in March. The first half of the year was characterized by unparalleled disruptions in both beef supply and demand.  By the end of June, cattle slaughter was mostly recovered; and has been thus far in the second half of the year. Since July, steer and heifer slaughter has averaged 0.5 percent above year ago levels. Total fed beef production from steers and heifers is up 3.7 percent year over year from July to the end of October.

Beef demand, however, continues to be challenged with restricted food service. Restaurants have recovered somewhat from the initial lockdown with more emphasis on takeout and delivery. Retail grocery demand remains robust and numerous adjustments have helped to shift some food service supply chains to support retail grocery supply chains. There are indications that retail grocery demand is being boosted again by consumers stocking up in the face of increased uncertainty. The shift from summer beef demand to winter raises additional concerns. Food service is typically more emphasized in winter months, which may be an additional challenge. The pandemic is resurging and additional restrictions on food service are a growing risk

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For this special edition of the Road to Rural Prosperity, KC Sheperd zoomed with Country Music singer songwriter Jamey Johnson to talk about his growing up on a family farm in Montgomery Alabama. From an early age he was influenced by country acts such as Willie Nelson, Alan Jackson, and Alabama. Johnson has always had strong ties to agriculture as he grew up watching his dad try to make a living on the family farm. His family eventually lost that farm, so Johnson has always understood the struggles facing American farmers.

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Ron Hays
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