CARES Act Stimulus Payments Could Be Helping Increase Beef Demand Says KSU's Dr. Glynn Tonsor
Oklahoma Farm Report
14 Sep 2020
Coronavirus stimulus payments could be helping boost beef demand says Dr. Glynn Tonsor, K-State livestock market economist.
Dr. Tonsor studies meat demand with regular monthly consumer surveys. Half of the surveys focus on retail and half on food service.
Tonsor said his August study showed demand for six of the eight beef cuts with mixed results as demand of only four of the eight cuts were up.
Demand for ribeye steaks were down in the food service sector while ground beef was up in the retail, Tonsor said.
Interestingly, in the August survey Tonsor asked consumers if they have received a CARES Act payment and 85 percent said yes.
Many of the respondents said it did not impact their food and meat spending, but 23 percent said it did increase their meat consumption.
We’re a population of 33 million people so 23 percent is still a lot of people, Tonsor said.
In my opinion that stimulus payment had a direct affect on beef demand, Tonsor said.
The K-State economist said it sets the stage for more debates of continued stimulus payments.
Shifting from domestic to international demand, Tonsor said globally, demand for U.S. beef is going in the right direction.
The export story in the spring months was we had logistical challenges in processing animals, Tonsor said.
We remain a major supplier of beef for the global market and I am optimistic...
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