Written Commentary
LIVESTOCK AM OUTLOOK
There are two main reasons for higher beef prices. One is transportation. From local trucks to international shipping, there are clogs in transportation. It is reported shipping times can be delayed from eight to twelve weeks. Because of delays on ships, companies are using more air transportation which adds to costs. When meat arrives at destinations, trucks are often not available or meat has to go to storage and moved when transportation is available. Every delay adds to the price.
There is also increased beef consumption. In 2021 world beef consumption is likely to break a new record. The USDA has estimated world consumption to end up to 60.04 million tons, a 1.6% gain compared to 2020.
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