continued from page 54
Beef Expands Share of Consumer Spending
Snubbed
to a different post, as Peel mentioned, commercial beef
.”
production this year will likely be record large, as will pork and
poultry production.
“Total red meat and poultry production in 2019 increased to a record
105.2 billion lbs., the fifth consecutive year of increase,” according to
Shagam. “For 2020, red meat and poultry production is forecast to
increase over 3% to 108.8 billion lbs., driven by record production of
beef, pork and broiler meat…Commercial beef production for 2020
is forecast to increase by about 1%, to a record 27.48 billion lbs.”
However, Good noted, “The balance of trade this year could easily
take 50% of that production increase off the market, keeping our
domestic supplies more manageable.”
Although still strong, U.S. beef exports last year were a touch softer
year over year, before a number of trade deals were finally concluded.
Even so, the export value per head of fed slaughter last year was
$309.75, according to data released by USDA and compiled by the
U.S. Meat Export Federation.
“U.S. exports (beef ) are expected to increase to a record 3.3 billion
lbs. in 2020,” Shagam says. “To the extent that lower production in
competitor countries such as Australia and New Zealand is expected
to limit their export potential, the United States will likely find lower
competition in several key markets.”
Along with the cyclical turn in cattle numbers, domestic and
international consumers continue to pay increasingly more for beef
than competing proteins, while buying more volume.
Total U.S. consumer expenditures for beef increased 4% to $111
billion last year, according to CattleFax. Projections call for another
2% increase this year to more than $113 billion.
That means more dollars to spread between industry sectors,
according to Randy Blach, CattleFax CEO. From 1980 to 1990 Blach
explained there was an estimated $32 per head profit, on average, to
split among cow-calf producers, stocker operators, cattle feeders and
beef packers. There will be nearly $500 to divvy up this year, according
to CattleFax estimates. That would be among the most in history.
“There is strong demand for our product, but that’s the result of the
fact that our business has paid attention to market signals and we’ve
been producing a consistent, quality product that has gained a greater
piece of that retail dollar. We need to protect that,” Blach says. “We
must pay attention to what the consumer is telling us. That means
conversations about topics like traceability and sustainability only
become more important as time goes on. We have to listen to the
consumer and respond with action to meet their needs and demands
if we’re going to continue to be successful in a hyper-competitive
global protein market.”
ABOUT THE AUTHOR: Wes Ishmael has been involved with livestock publications since 1983. Wes grew up in Colorado and has always been
in and around the livestock business. He now lives at Benbrook, Texas.
BULLS FOR THE FUTURE
SCHILLING GAME OVER
4/3/19 • Homo Black • Polled • 50% Lim-Flex
Schillings R&L Classified x Schillings Beautician
CE: 9 BW: 0.8 WW: 56 YW: 82 MK: 20 SC: .97
DC: 10 YG: -.28 RE: .50 MB: .05 $MI: 51
Featuring two of the most prominent lines in the
Angus and Limousin business, Game Over combines
sensible birth weight with tons of eye appeal.
owned by Schilling Limousin & Davis Limousin
ROMN FLOYD MUDHENKEY 101F
4/11/18 • Black • Homo Polled • Purebred
AUTO Lucky Guy 140D x ROMN Aretha 50A
CE: 16 BW: 0.0 WW: 65 YW: 99 MK: 24 SC: .60
DC: 13 YG: -.57 RE: 1.06 MB: -.35 $MI: 42
Big middled, yet thick, Mudhenkey sports a balanced set of
numbers with high levels of milk and the attractive profile to
sire heifers that will show and bulls that will be easy to sell.
owned by ROMN Limousin & Super C Cattle
CWCL LUDENS FIRST DAKOTA 018F
3/2/18 • Black • Homo Polled • 75% Lim-Flex
LFLC Bank Account 701B x CWCL Gangnam Style 135A
CE: 12 BW: 0.0 WW: 58 YW: 86 MK: 16 SC: .56
DC: 10 YG: -.60 RE: 1.06 MB: -.22 $MI: 44
Fresh off his Supreme title at the Black HIlls Stock Show,
First Dakota is poised to make a big impact on the breed
given his show ring style combined with his moderate
birth weight and breed leading ribeye.
owned by Ludens Family Limousin & South Fork Ranch
MICHAEL AND SARAH LUDENS
45242 287TH ST. • HURLEY, SD 57036
CELL: 605/360-1191 • EMAIL: [email protected]
f LIMIGENEBULLS
56
• APRIL 2020