Animal welfare, reduced beef demand discussed by National Chicken Conference panel

Consumers may be looking for third-party verification that livestock is being treated humanely, rather than just a statement on packaging. Donnie King, senior group vice president poultry & prepared foods, Tyson Foods, gave that opinion during the Industry Outlook Panel at the National Chicken Council Annual Conference  on October 3.
He also stated that Tyson's research has shown that while the end consumer may not care about things like gestation crates in the pork industry, some customers - food service companies - see them as a big issue.
"At Tyson we want to go out and validate what independent family farmers are doing," said King. "We care enough to go look, we care enough to learn, and when we find a better way, we'll use it."
See a video clip of King's comments.
John Keating, president of Cargill Beef, agreed the industry needs transparency. "Two years ago, Oprah Winfrey called and wanted to go through a plant, and we got a lot of good press from that," said Keating. "Millennials only believe something if it is on YouTube."
Commenting on the future of the beef industry and changing consumer preferences, Keating said he sees continued overcapacity in beef feeding and processing, at least in the short term.  You can see his comments on WATTAgNet.com.

Purdue economist says high beef prices will benefit pork, poultry producers

The total United States cattle and calf inventory fell to its lowest level since 1952 this year as a result of high grain prices and drought. Dr. Chris Hurt, professor, agricultural economics, Purdue University, speaking at the WATT Meat and Poultry Supply and Price Forecast webinar said that 57 percent of the cattle herd is raised in parts of the U.S. that are still in some sort of drought. Low rainfall on pasture and range lands has made any expansion of the cattle herd difficult, and the U.S. herd is expected to get smaller before it begins to expand.
High cattle and retail beef prices will help to support poultry and pork prices into 2014, Hurt said, even though poultry and pork supplies are expected to increase next year. Hurt predicts increases in production of pork, chicken and turkey of 3, 3 and 4 percent, respectively, in 2014, while beef production falls 6 percent.
Per capita consumption of red meat and poultry in the U.S. set an all-time high in 2008 at 222 pounds, but it fell to 203 pounds in 2012. Hurt expects that per capita consumption of red meat and poultry in the U.S. will recover some of the lost ground as production of pork and poultry ramp back up. He predicts that per capita consumption of red meat and poultry will rise back gradually to 210 pounds by 2016.
Hurt predicts profitability for hog producers from the third quarter of 2013 through the third quarter of 2014. He estimates that hog prices will range from $63-67 per hundredweight over this 12 month period, and costs will be approximately $58 per hundredweight. Hurt predicts that Oklahoma City Steer prices will average $165 per hundredweight in 2014.

Rising beef prices will affect consumers

Thin is in. Many consumers are seeking to improve their diet to stay healthy and maintain a healthy weight. But "thin" is also a word that can be used to describe economic margins, spanning consumers' own food dollar and retailers' and food service operators' budgets.
As food prices climb, supply and demand are impacted. With prices for commodities like beef and pork particularly on the upswing, those who sell beef and pork dishes in the deli and prepared foods department can gauge consumer sentiment to best create and merchandise red meat meals that fit people's current attitudes and preferences.
"Rising prices for beef-and to a lesser degree, pork-will have direct implications for operators and suppliers through 2013," said Darren Tristano, vice president of research firm Technomic. "Opportunities are emerging to explore different cuts of meat and develop innovative applications that cross-utilize beef and pork across the menu."
Technomic recently updated its "Center of the Plate: Beef and Pork Consumer Trend Report," with implications for those who prepare and merchandise beef and pork entrees. According to the latest research, consumers report that on average, four out of every five meals they eat contain some kind of meat.
When presented with a choice of protein for a menu offering, consumers reported that they order an item with beef or steak 33 percent of the time. Chicken gets almost as much, at 29 percent.
Sixty-five percent of consumers say they enjoy pork served with sweet/honey flavors, while 64 percent say they enjoy hickory flavors and 58 percent say they like barbecue sauces, glazes and marinades. Additionally, consumer preferences for sweet, tangy and chipotle-flavored barbecue sauces are on the rise.

Rising US pork, beef costs will contribute to 2011 food inflation

Rising pork and beef costs will continue to contribute to U.S. food inflation, which according to the U.S. Department of Agriculture will rise 3% to 4% in 2011, the most since 2008.
Pork prices may now rise 7.5%, increased 1% from March estimates. Beef estimates have been increased 2.5% from March, to 8%.
“I suspect when December arrives we will see increases of 4% to 6%” for the year in overall prices, said Bill Lapp, the president of agriculture-research company Advanced Economic Solutions. “The pressure on food prices is clearly on the upside." According to the Bureau of Labor Statistics, food costs rose 0.7% in March, capping a 2% gain for the first quarter of 2011.
Hog futures increased 25% for the year as of April 21, on rising export demand, while cattle futures were up 6.3%.