Economist says there’s no easy fix to cattle pricing imbalance

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Economist says there’s no easy fix to cattle pricing imbalance

Many cattle producers have expressed concern about the disconnect between cattle prices and beef prices.

University of Missouri livestock economist Scott Brown says one of the issues exacerbating the problem is the supply of fed cattle in relation to slaughter capacity.  “We’ve had pretty good runs of cattle each week and I think that’s put packers in a position where they haven’t had to bid as aggressively for cattle as they otherwise would,” he says.  “Yet on the other side, demand for beef is strong and that’s led to higher boxed beef prices.”

He tells Brownfield there’s not an easy fix to a very complicated problem.  “The added costs that come with COVID-19, whether that’s social distancing or increased transportation costs,” he says.  “All those things have continued to leave a wedge between farm-level prices and prices higher on the marketing chain.”

Last week representatives from six of the largest ag and cattle industry groups met to discuss the price imbalance in the cattle supply chain. The findings from that meeting are expected to be released today. 

AUDIO: Scott Brown, University of Missouri

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