MANHATTAN, Kan. – U.S. cattle producers are responding to recent record-high prices by expanding their herds, but Americans’ appetite for beef will play a crucial role in how the larger supply will play out for the producer’s bottom line, according to a Kansas State University agricultural economist.
Demand for beef has been strong the past two years, even in the face of those record-high prices, said Glynn Tonsor, agricultural economist with K-State Research and Extension.
“The consumer has been willing to pay more for beef and pork than we thought they would,” he said, noting that consumers are spending a smaller percent of their disposable income on red meat than they used to. “Going forward, hopefully they will continue to pay those prices.”
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