Changes forecasted for beef industry

 A report out from Rabobank shows some changes ahead that could mean higher costs for beef industry.

Beef demand is high and expected to stay that way for several years—however, there are changes ahead for the industry. That’s what a new report out from Rabobank has to say.

Let’s face it: No industry is the same or will be the same as it was before COVID-19 in the post COVID-19 world.

The pandemic has led to some positives in the beef world, one of which has been increased demand. The pandemic altered people’s lives in a major way—less eating out and more in-home meals. And due to government stimulus and changes in many workplaces individuals and families had more disposable income and time to cook at home.

However, COVID-19 also showed problems in the supply chain when it comes to beef. While there might be enough beef being raised, getting to the public proved to be problematic and costly.

It is not realistic or economical feasible to think producers can build and hold an increased inventory of cattle with the elasticity available when market conditions call for contraction or increased supplies of cattle to the market, the report notes. "A more durable and flexible supply chain will largely depend on changes and adaptations post-harvest.”The Rabobank report says, “Transitioning from a just-in-time delivery system to a just-in-case delivery system sounds great. But how can that resilience be built into the system without the escalating costs becoming prohibitive?"

Cattle producers have little or no control over what happens in the beef supply chain once the animal is harvested. However, producers are going to have to be aware of changes in the supply chain...MORE