Post Covid the cost of beef in general has severely increased. Though there was a rise in
Question:
Post Covid the cost of beef in general has severely increased. Though there was a rise in beef prices pre-Covid, it has only gotten worse due to shortages in feed, and an increase in labor costs. Unfortunately, this will more than likely be a trend that continues as time goes on. Because of the demand for beef products decreasing as people change to an alternative product, the prices for alternative products will increase as the demand increases.
With shortages in supply comes an inflation in price. This is true for all markets. What cattle ranchers face is also an increase in shortage as the cost of replenishing their herd continues to rise. So as the article stated, many are not going to be willing to grow their herds. This lack of increase in supply will continue the shortage until the demand lowers to where the supply is consistent with it. Until that happens prices will continue to inflate.
Beef prices are going to go really high as people continue to demand it until the price hits what people are not willing to pay. When that happens, because it is elastic, it will lower in price as people go for alternatives. Once people buy enough alternatives to where the demand lowers enough to where price lowers then prices will bounce back. The big factor as to how high prices will stay is the costs of feed and labor. Since both are still very costly regardless, and continue to increase, then prices will more than likely never again lower to what they were pre-Covid.
- What is your opinion on the above post?
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook