Bass Anticipates Improved Market Conditions For Beef In 2023
Beef producers could enjoy better market conditions, and perhaps a better bottom line in 2023, that according to one University of Idaho expert. Dr. Phil Bass said in his assessment the relationship between producers and packers has improved over the past 12 months, and he’s hopeful the positive dialogs as of recent will continue. He noted that tensions between the two sides will remain, and are needed.
“That helps to maintain the fairness in the market. I think bringing these new packers online, this new hook space online, is going to help alleviate the concerns of the producers. But I'm telling you that that the tables are going to be flipped here pretty darn soon, and the producers are going to be in the catbird seat. Because if you have calves those calves could be worth a lot more than they used to be.”
Bass noted not only has relations between the two sides improved, but producers across the Northwest, and nationally, are starting to see more options for hook space, with additional plants coming on-line and smaller operations expanding.
“The True West Beef plant in in in southern Idaho, in Jerome ID, I've driven past it. It’s a beautiful looking facility. It's going to be, I believe, somewhere between 500-800 head capacity early on. It’s not a huge amount of animals, but still it's going to help with a little bit more of profitability in the market because there's going to be the much more competition for hook space, and the the producers should be able to should be able to capitalize on it.”
Bass noted, no matter what side of the fence you sit, the entire beef industry should be encouraged because shopping habits and polls show consumers want beef. And he doesn’t expect that to change anytime soon.
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