Economists explore COVID-19 impact on beef prices
COVID-19 disrupted supply chains, caused unprecedented shock throughout beef industry.
Source: AAEA, AEPP/Compiled by Staff, NebraskaFarmer
Oct 15, 2020
COVID-19 disrupted supply chains and emptied store shelves. Meat products were among the products disappearing from shelves, in part because workers in meat processing plants were becoming sick with COVID-19 and unable to work, forcing plants to close. Restaurants closed or went to take-out only and schools closed, reducing demand.
In an article, "Beef Cattle Markets and COVID‐19," in Applied Economic Perspectives & Policy, Charles C. Martinez, Joshua G. Maples and Justin Benavidez explore the impact of the pandemic across all sectors of the cattle industry. Martinez is an assistant professor and Extension economist in the Department of Agricultural Resource and Economics at the University of Tennessee. Maples is an assistant professor and Extension economist in the Department of Agricultural Economics at Mississippi State University. Benavidez is an assistant professor and Extension economist in the Department of Agricultural Economics at Texas A&M University.
“COVID-19 disrupted not only the cattle industry but just about every market," Martinez said. "When analyzing the cattle industry, COVID-19 has really showed the importance of having a risk strategy, regardless of size or sector.”
Here's a look by sector of the cattle industry.
Cow-calf producers ...
Stocker and backgrounding producers ...
Feedlot producers ...