News
Despite higher feed costs, there are positives for livestock producers
CoBank Lead Animal Protein Economist Will Sawyer says rising feed costs are challenging livestock producers in the first quarter of the new year.
“We expect about 25 percent inflation in the feed cost arena for beef, pork and chicken producers,” he says. “That’s the highest amount of inflation in over a decade.”
But, Sawyer says there are still positive signs at the start of 2021.
“It’s been remarkable how strong meat prices—beef, pork, and chicken—have been in the first 5 or 6 weeks of the year,” he says.
He tells Brownfield so far consumers are willing to pay more money for meat.
“Right now the consumer is willing to pay the higher price that is keeping producers profitable in a much better way than we would have thought,” he says. “We know that the year is far from over but we’re off to a great start and I think that’s something we should celebrate.”
The USDA has projected cash receipts in the animal protein sector to increase $8.6 billion this year.
