Cow-Calf Corner | November 14, 2022
Beef Demand Holding Steady
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist
The all-fresh retail beef price in October was $7.25/lb., down slightly from $7.32/lb. in September and down 4.0 percent from the record high of $7.55/lb. one year ago. In 2022, the all-fresh retail beef price has remained in a narrow range from $7.37/lb. to $7.25/lb. and has averaged $7.33/lb. through October, up from the 2021 annual average of $6.95/lb. Figure 1 includes all-fresh retail beef prices since January 2018 and shows the sharp increase in prices in 2021 and steady prices thus far in 2022.
Figure 1.
Beef demand considers retail beef prices as well as the quantity of beef consumption. Total commercial beef production is projected for 2022 at a record level of 28.3 billion pounds. After adjusting for beef trade, per capita retail beef consumption is projected at 59.3 pounds, up year over year from 58.9 pounds per capita in 2021. The fact that retail beef prices this year are averaging higher at the same time as consumption is increasing is an indication of strong beef demand.
Wholesale boxed beef prices, similar to retail prices, have traded in a narrow range for most of 2022. Since March, Choice boxed beef has averaged $261.77/cwt. with a weekly maximum of 272.48/cwt. and a minimum of $246.31/cwt. leading to a range of $26.17/cwt. This follows very strong wholesale demand in 2021 which led to an average Choice boxed beef price of $279.81/cwt. with a weekly maximum of $347.02/cwt., a minimum of $206.73/cwt. and a range of $140.29/cwt. for the year.
So far in 2022, Choice boxed beef prices reached a low for the year in October of $246.31/cwt. and have increased to over $263/cwt. in the most recent two weeks. Prices for numerous wholesale cuts have increased including the tenderloin at $15.06/lb., up nearly 38 percent from the August low and now 12 percent higher than year ago levels. This is the highest wholesale tenderloin price since September 2021. Wholesale ribeye prices normally increase in the fall ahead of holiday demand for Prime Rib, and recently reached $10.23/lb., the first time over $10/lb. since last year. Current ribeye prices are up nearly 23 percent from the summer low.
As always, there is a great deal of dynamics across various beef product markets. In addition to the middle meats discussed above, wholesale prices have increased recently for chuck rolls, mock tender, chuck flap and eye of round. Other products continue to have weak or lackluster prices including tri-tip, bottom sirloin flap and flank steak. Wholesale brisket prices have been mostly steady this year, averaging $5.86/lb. after surging to record high levels of $8.00/lb. in the summer of 2021. Wholesale ground beef prices have dropped about 10 percent since the end of summer grilling season in September. There is constant jockeying in wholesale product values due to the dynamics of domestic and international beef demand. However, beef demand appears to be generally steady and strong at the end of 2022.
Beef production is expected to decrease sharply in 2023, which will lead to higher beef prices and more beef product market dynamics. Consumers, thus far, have absorbed large supplies of beef at record prices. As beef supplies tighten, some consumers may begin to “trade down” as market prices ration a smaller supply of beef. Per capita beef consumption is expected to decrease in the coming year, not because beef demand is weak but simply because the available supply of beef will decrease.
BEEF! IT’S WHAT’S FOR THANKSGIVING!
Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist
“Beef. It’s What’s for Dinner” is an American advertising slogan and marketing campaign aimed at promoting the consumption of beef. The ad campaign, originally launched in 1992, has been long-lived, highly effective and award winning. The slogan is said to be recognized by more than 88% of Americans, accordingly, I borrowed from this well-known phrase for my title.
Thanksgiving is a time when Americans come together to celebrate a holiday that connects each and every one of us. The holiday was first celebrated in 1621 when the Plymouth settlers, joined with the Wampanoag Indians to enjoy a fall feast to celebrate a bountiful harvest. The tradition of Thanksgiving became official when President George Washington declared the nation would celebrate the day on November 26, 1789. President Abraham Lincoln wrote a proclamation declaring all states would celebrate the day in 1863. President Franklin D. Roosevelt signed a resolution from Congress in 1941 that established the official date of Thanksgiving to be the fourth Thursday in November each year. While Thanksgiving is observed in varied ways in different nations, in American the holiday is truly rooted in agriculture. We may bring our own flavors and traditions to the table but Thanksgiving is a time for all of us to celebrate our nation’s harvest and ability to efficiently produce food, to express gratitude for our blessings, and look ahead to the future.
Alexander Hamilton once proclaimed: “No citizen of the U.S. shall refrain from turkey on Thanksgiving Day”. With all due respect to Mr. Hamilton whose ideas are credited with laying the foundation for American government and finance, I encourage you to make plans to enjoy BEEF this year at Thanksgiving. Please give consideration to the following when planning.
- How much time do you have to spend cooking?
If your answer is not much, consider grilling or pan frying. Middle meats from the beef carcass like ribeye, strip loin, filet and sirloin steaks are very tender and can be cooked quickly at high temps on the grill or stove top to seal in the tenderness, juiciness and flavor. If you intend to grill or pan fry steaks remember to give them adequate time to thaw. Burgers made from ground beef are also great when grilled or pan fried.
If you have more time to spend in preparation, smoking or oven roasting can result in the same tender, succulent beef flavor. Roasts from the chuck or round can be seasoned and slow cooked to bring out “melt in your mouth” flavor. Beef brisket is ideal for smoking and slow cooking. An intact rib roast also can work great for smoking or slow cooking. - What is your budget?
Typically the steaks or middle meats will be the more expensive cuts to purchase. The cuts that require more cooking time (because they contain more connective tissue) can be purchased at a lower price per pound. Ground beef is also less expensive.
More information about cooking methods, recipes and beef cuts can be found at www.beefitswhatsfordinner.com. Regardless of the cut of beef you enjoy this Thanksgiving you will be eating a nutrient dense, delicious source of protein, B vitamins, iron and zinc that is a healthy diet choice.
This year on Thanksgiving, I want to say thanks to America’s farmers, ranchers and everyone in production agriculture that make it possible. Whatever we eat on Thanksgiving Day, it is the ingenuity, perseverance, efficiency, work ethic and “can do” attitude of America’s ag producers that permit us to spend a relatively small percentage of our income on food.
Thanks for reading and I hope you enjoy BEEF for Thanksgiving!
See Dr Mark Johnson explain why switching out turkey for beef is a good idea for Thanksgiving!
Vaccine Handling and Storage
Bob LeValley, Oklahoma Beef Quality Assurance Coordinator
The highest quality vaccine that producers purchase may be of little value if not handled and stored properly. Even experienced producers may overlook key principles when preparing and administering vaccines and other animal health products. Product storage and handling is important to ensure that the efficacy of products is not compromised.
Modified live vaccines must be reconstituted with a sterile diluent prior to administration. It is generally recommended that these products be used within an hour of reconstitution. The products are routinely used with a good response when administered and handled according to label directions. The processing speed in a stocker operation is often considerably faster than a cow/calf operation. Cow/calf processing facilities are often in area that are not well sheltered from the weather. This stresses the need to exercise caution when handling and administering modified live products. Common handling techniques can render MLV products ineffective and even reduce the effectiveness of killed vaccines and other products.
It is always a good practice to purchase vaccines from a reputable distributor. A vaccine will have less than normal effectiveness if it has ever been stored improperly. Improper storage includes freezing, and/or exposure to heat or sunlight. Maintaining a high level of efficacy is critical to establishing immunity in a majority of vaccinated cattle. Vaccines should be stored in a dependable refrigerator that maintains a temperature (typically 35-45⁰ F) as directed by the product label. Chute side vaccine coolers work well for holding the vaccines during processing. These coolers have slots for holding syringes after they are loaded, and vaccines are placed inside the cooler to maintain temperature. Remember to take that cooler with you when you go purchase vaccines so that you can keep the products at the recommended temperature on the way home. Vaccine coolers can be purchased ready to use, or can easily be constructed by converting small coolers for this intended purpose. Instructions for making an inexpensive vaccine cooler are available by accessing the beefextension.okstate.edu website, scroll to the Ok Beef Quality Assurance link, then click on “Chute Side Vaccine Cooler”. While you are at the site, take some time to review the numerous additional OSU Extension beef cattle resources available.
It is also important to maintain a record of lot/serial numbers of products in the event of a recall or other situations that may arise. A quick and easy method of recording the lot and serial numbers while working cattle is to simply to take a photo of the information on the vial label with a cell phone camera. It can be transferred later to more permanent records. Products that are out of date should be properly discarded. Through proper record keeping, storage and handling, animal health products will be an effective piece of a comprehensive cattle health program.