In a webinar hosted by the University of Nevada – Reno on May 5, Don Close, senior animal protein analyst at Rabobank and Ty Lawrence, professor of animal science at West Texas A&M University, discussed the present pandemic and what they predict is coming down the pipeline for the beef industry. 

COVID-19 continues to sweep through packing plant workers, leading to severe disruptions in beef processing. Estimated cattle slaughter for the week ending May 2 was 425,000 head, down 38% year over year.

A report from the Centers for Disease Control and Prevention (CDC) released May 1 says 4,913 cases and 20 deaths have occurred among some 130,578 workers at 115 meat and poultry processing facilities in 19 states. 

Estimating the total economic effect of the COVID-19 pandemic on the economy and the beef industry requires a number of assumptions based on imperfect information. As a result, any economic impact forecast has a wide confidence interval which can only narrow as the pandemic abates and post-quarantine economic data become available.

Falling cattle prices and both market and consumer unrest has increased the pressure from beef industry groups and lawmakers on the USDA to increase their investigations into the cattle markets.

The 2020 beef production forecast for 2020 was raised by 240 million pounds to 27.7 billion pounds from the previous month. This increase is based on the pace of fed cattle slaughter and heavier expected cattle dressed weights.

U.S. Secretary of Agriculture Sonny Perdue has unveiled the Coronavirus Food Assistance Program (CFAP), designed to take several actions to assist farmers and ranchers and consumers in response to the COVID-19 national emergency.

A study released April 14, 2020, estimates cattle industry losses as a result of the COVID-19 pandemic will reach $13.6 billion.

The U.S. meat industry faces unprecedented threats as COVID-19 sweeps through labor forces at meat processing facilities nationwide.

Economists often say that market prices are determined by demand and supply. What they really mean is more correctly stated as “market prices are determined by expectations of demand and supply.” Under more stable and normal circumstances, this distinction is not particularly significant.