Tyler Cozzins says Inflation Environment May Be a Headwind for Beef Demand in the Future
Oklahoma Farm Report
02 Aug 2022
Senior Farm and Ranch Broadcaster, Ron Hays, features comments from agricultural economist at the Livestock Marketing Information Center, Tyler Cozzins, talking about beef demand and recent beef retail prices in the U.S.
Cozzins says beef demand seems to be holding steady despite a very high plateau in current beef prices.
“In June, retail beef prices were $7.66 per pound,” Cozzins said. “This is up 20 cents per pound from last year. The record price we have seen for beef actually occurred in October of 2021 and that was $7.90.”
Cozzins said July prices are expected to remain high based on what we are seeing as far as wholesale prices that have occurred over the last month.
“Specifically looking at the chuck, round, loin and ground beef, often those grilling cuts that we see, the chuck and the round have been tracking about even with prices that we saw a year ago,” Cozzins said. “Chuck has been about $3.50 per pound and the round has been about $2.50 per pound.”
On the other hand, Cozzins said we are seeing the loin higher than it was last year at about $9 per pound, which is up about $2 from last year.
“Interestingly, ground beef is also holding very strong specifically looking at the 90 percent lean and 50 percent lean beef prices,” Cozzins said. “90 percent lean has been about $2.70 per pound. That is well above typical levels for this time of year, which are usually about $2.20 so about 50 cents higher.”
It is a similar case with 50 percent lean beef, Cozzins said, because it is at about a dollar per pound whereas it is typically 85 to 90 cents per pound this time of year.
“Expect those ground beef prices to remain high based on what we are seeing in those 90 and 50 percent lean beef prices,” Cozzins said.
In the face of inflation and slowing of herd rebuilding efforts, Cozzins said beef prices remain elevated and domestic beef demand holds strong...
more, including audio [5:32 min.]