In this file:

 

·         New consumer spending shows beef is best

High-quality, differentiated beef products are accounting for an ever-larger portion of the beef industry’s total sales.

 

·         Analyst: Meat Demand Back in Play Due to COVID-19

… Ultimately, McCormick says the pricing relies on exports...

 

 

New consumer spending shows beef is best

High-quality, differentiated beef products are accounting for an ever-larger portion of the beef industry’s total sales.

 

Nevil Speer, BEEF Magazine 

Jun 29, 2020

 

“Beef demand is the difference maker.” Last week’s column with that title noted that, “Demand makes a difference when it comes to sorting differences of inventory and price: better demand means better prices. Improved beef quality and consistency, in conjunction with ongoing education, research and promotion by the Beef Checkoff, is paying dividends over time.”

 

Along with last week’s data, that statement is best represented by a historical perspective of consumer spending patterns. The beef industry entered the 1980s under pressure due to a variety of factors such as perceived health and convenience issues. However, the most significant negative consumer perception was being driven by quality concerns and product inconsistency.   

 

The beef industry lost sight of what really matters when it comes to purchasing decisions. And they paid for it.

 

The net result was a huge gap in new spending. Between 1980 and 1998, pork and poultry continued to grow their business while spending on beef remained flat. The difference being pork and poultry combined to outgrow beef by $100 in new spending during the 80s and 90s.   

 

Then the beef sector woke up and got to work. The turnaround during the past 20 years is nothing short of remarkable. 

 

During that time beef has narrowed the gap – gaining $165 in new spending versus just $142 for pork and poultry combined. In other words, beef has gained market share during the past several decades. And even more important, demonstrated its ability to successfully capture new spending at an increasing rate.

 

Establishing positive consumer experiences is essential to generating sustainable business models...

 

more, including chart

https://www.beefmagazine.com/marketing/new-consumer-spending-shows-beef-best

 

 

Analyst: Meat Demand Back in Play Due to COVID-19

 

by AgDay TV

via AgWeb - Jun 29, 2020

 

Jim McCormick, hedging strategist with AgMarket.Net, walks through the impacts of COVID-19 on the current livestock markets and what to watch for in the coming week.

 

“With a lot of people still kind of locked down due to the COVID-19 crisis, I would guess you’re going to see a lot of backyard BBQ,” says Jim McCormick, hedging strategist with AgMarket.Net. “Hopefully, that will bring some demand back in.”

 

McCormick says boxed beef cutout values are seeing more of a “normal price.”

 

The daily spot Choice box beef cutout ended the week on Friday, June 19 at $213.72 which was $16.92 lower compared to the previous Friday.  Last year, it was $219.82 on the same Friday.

 

“The boxed beef has definitely been on a wild ride, going [up roughly] $400,” says McCormick. “Now, it’s kind of come back to close to normal pricing by historical pricing, maybe even a little bit lower. That’s bringing the demand back to the marketplace.”

 

However, USDA’s Hogs & Pigs report showed an all-hog inventory rose to the highest ever. The market hog estimates were above trade estimates.

 

According to Pro Farmer, the beef cow slaughter into late March had been at a nine-year high. It offered some hints at herd liquidation before the pandemic slowed operations at processing plants in April and May. Beef cow slaughter has jumped back to multi-year highs as slaughter rebounded this month.

 

“The problem is, we backed so many cattle up, they are 40 to 50 pounds heavier. We almost have an abundant supply of protein right now. That’s become a problem.

 

Ultimately, McCormick says the pricing relies on exports...

 

more

https://www.agweb.com/article/analyst-meat-demand-back-play-due-covid-19