"Since 2009, 57 feedyards, three major packers and countless small processors have closed their doors," Ryan Turner told those attending INTL FCStone's 12th Annual Dairy Outlook Conference at the Federal Reserve Bank in Chicago, Ill. That occurred partly because the U.S. beef herd hit a 30-year low in shear numbers. Beef has taken it on the chin so hard, that pigs will trump cattle.
"This projects to be the first time in U.S. history that pork production will outpace beef production," said Turner, who is INTL FCStone's meat and livestock specialist.
This has partly taken place because beef prices have gone sky-high.
"Not only are beef prices at an all-time high price, beef is even at an all-time high versus other cuts of meat," said Turner. "At today's prices, I believe beef has become a luxury item with only hamburger being a potential mainstay in American diets."
As for the long-term future, beef cattle numbers could be rebounding. If that takes place over the next two to three years, beef prices could moderate, which could cause consumers to return to purchasing beef's high-end cuts.
(c) Hoard's Dairyman Intel 2015
June 29, 2015
