At the annual meeting of the Illinois Beef Association, approximately 200 beef producers received encouraging news about market opportunities in the coming year. The meeting featured an outlook presentation by John David Hales, a respected cattle market expert.
Hales predicted a continued uptrend in the futures market for the next year to 18 months, barring unforeseen events like COVID-19. He emphasized that heifer retention, which reduces slaughter, is becoming a significant factor in the industry. Hales anticipated a decrease in heifer slaughter before fall, with potential further increases in heifer retention if the hay season proves favorable.
The market's peak is expected to occur in late 2024 or early 2025, according to Hales. He also highlighted a new market player, Tyson's Suspended Fresh process, which could moderate seasonal prices. This innovative process allows meat to be stored at low temperatures for an extended period, providing retailers with the opportunity to offer never-frozen, fresh beef during off-peak demand seasons.
While the current high beef prices may concern some customers, Hales acknowledged that they could potentially reduce volatility in the market. However, he cautioned that new processing plants might face challenges during this time.
On the international front, export opportunities were discussed, with Japan, South Korea, and China being the largest buyers of U.S. beef. Despite headwinds such as Proposition 12 in California and potential port strikes, there is a push for strong export demand. The U.S. Meat Export Federation highlighted the rebounding global tourism industry, the growing middle class worldwide, and the expectation of inflation evening out as positive factors for the market.
Photo Credit: GettyImages-erdinhasdemi
Categories: Illinois, Business