Managing the costs associated with changes happening in the beef supply chain may result in a shift of the historical live cattle and retail beef price ratio, according to a new RaboResearch report, “Beef Supply in a Post-Covid World.”

“While a cattle producer has little or no control over what happens in the beef supply chain post-harvest, it will be important for livestock producers to be aware of changes occurring throughout the supply chain,” writes report author, Don Close, senior animal protein analyst with Rabo AgriFinance. “Any changes, any inventory building, any additional controls and inspections could have a direct impact on the total cost of beef to the end user, which could change historical norms for live-to-wholesale and live-to-retail price spreads.”

Close presented the findings of the report at the 2022 Cattle Industry Convention and NCBA Trade Show yesterday in Houston, Texas. He says the area of change with the greatest potential direct impact on cattle producers is meatpacking plants’ embedding more automation into their facilities. The report notes that the initial introduction of advanced technology will not serve as a replacement for labor. It will serve which will require a workforce with different skill sets or extensive retraining.

2022 Cattle Industry Convention and NCBA Trade Show Photo Album