Dr. Karl Skold, head of agricultural economics at JBS, talked about the ample supplies of meat we will see in 2017 during a workshop at the American Farm Bureau Federation’s 2017 Annual Convention & IDEAg Trade Show. Skold said a historically unusual situation of expanding herds, growing supply and significant demand is driving an overall positive outlook for producers of beef and pork.
“Start with lower feed costs,” Skold said, “And the economy continues to improve. We are nearing full employment and wages are picking up.” Skold said these trends are showing up in how consumers are making meat choices.
The situation with pork is similar, Skold said, and pork has been profitable until a fourth quarter drop last year. Per capita pork consumption has been stuck in the neighborhood of 50 pounds per person for some time. Pork is more dependent on the export market.
Skold also said that per capita consumption over all meats, including chicken, is going up, tracking lower prices, but beef is gaining favor again with the ample supplies. The economist said that surveying retailers revealed that they had not priced steak as low in the last quarter of 2016 in six years.
Listen to Skold’s complete remarks here: Dr. Karl Skold, JBS - Livestock Market Outlook
View and download photos from the event here: 2017 AFBF Annual Meeting Photos