US Beef Demand: The Risk of Recovery

“Post-pandemic, Rabobank expects domestic US beef demand to retreat from the all-time highs realized throughout 2020. The extreme late-spring spike in retail prices can largely be explained by the reduced availability of beef and other meat products following the well-documented, Covid-19-induced supply chain disruptions,” according to Dustin Aherin, Analyst – Animal Protein.

However, the elevation of beef demand, which accounts for both supply and price, indicates that higher beef prices have resulted from more than just supply changes, particularly with meat supplies recovering in recent months. “The exact circumstances that fostered beef demand’s incredible strength during the pandemic also foretell potential vulnerabilities during the post-pandemic recovery period.”