Long-term demand picture doesn’t improve with panic buying
The coronavirus outbreak has a lot of consumers stocking up at the grocery store and leaving meat cases empty.
University of Arkansas ag economist John Anderson says while that’s provided an immediate boost to the markets, panic buying is not the same as increasing demand for red meat. “Essentially what panic buying does is demand forward from the later period into the current period,” he says. “And it’s created this short-run shortage that the market is scrambling to cover to maintain continuity in the supply chain. But, it doesn’t necessarily mean the demand for 2020 is going to look better than 2019.”
University of Missouri livestock economist Scott Brown says consumer buying patterns have been altered dramatically, and it could reach a point where consumers no longer feel the need to purchase meat products every couple of days.
He tells Brownfield that could have long-term negative implications for prices. “If that happens, and it all of the sudden pushes that choice box beef price back to $220 or so, I don’t like where that sits for us as we look out over the next 60 to 90 days,” he says.
Anderson made his remarks during a recent webinar hosted by the Arkansas Cattlemen’s Association.
Brown made his remarks in the latest episode of Brownfield’s Weekly Livestock Market Update.