Beef Demand is Strong

If you’ve been watching the markets following the announcement of the UK’s vote to leave the European Union, you have seen the volatility but AgriBeef Company’s Vice President of Risk Management Kevin Hughes says beef producers don’t need too concerned with what is happening in the U.K. and the good news is beef demand is very good.
Hughes: “The beef market is in good shape and the demand for beef is very strong. It is getting stronger as wholesale prices are coming down. So we have had a quite a good demand pull through throughout this summer grilling season and that looks like it will continue on into late summer and early fall as these lower prices are giving the retailers the benefit of booking prices that are lower than they have been in quite sometime and allow them to feature beef. We can get caught up in all of these outside markets that are distractions when in the long run — it is all about demand. We’ve been benefiting from demand — particularly on choice beef — which is reflected in the fact that choice beef is $12 premium to select beef in the cutout. As more of these food service operators and retailers are find consumers willing to go with a choice product — it is very encouraging. That is a bright spot. We try not to get so distracted and focus on what is important and that is that we have good consumer demand for beef.”