-32—Lancaster Farming, Saturday. October id. 1969
Abundance Of Beef Depends
On Sufficient Producer Return
An abundance of beef in the Hcrrcll DeGraff in testimony
years ahead depends upon the for the Special Studies Sub
willingness of American con- committee of the House Com
sumers to pay sufficient price mittee on Government Opera
tor this most popular of all tions which is investigating the
foods to encourage production rise in retail beef prices this
by ranchers and feeders, the year.
president of the American Meat
Institute said lecently
"On a continuing basis, they in the 12 month period ending
(consumers) cannot have both July 1 Since July, cattle prices
the beef supply they seem to and wholesale beef puces have
want and the lower level of beef again declined
prices they seem to want ” In the past yea r, the farm to
This point was stressed by wholesale spiead covering meat
DeGraff said that beef prices
had increased about 16 percent
packing costs showed no up- plids ore to meet consumer dc- available.— *nd_theref6re con
ward trend in spite of sharply mand in the years ahead. sumers would experience higher
increased labor and other costs. Noting that it takes 27 months short term beef prices than if
In both the second quarter of to produce cattle for market, no such holdback for breeding
1988 and 1969 the farm-to-whole- DeGraff said that consumers were to occur. But, over the
sale margin was evactly the have to distinguish between next year, or two, or three, more
same, 10,4 cents per pound, De- short-term and long-term rela- calves would be born, more
Graff said. tionships between beef prices steers and heifers would be fed
“While we are fully aware of and beef supply. out for maiket, the beef supply
the current consumer dissatis- “First, if farmers and ranch- would be expanded, and prices
faction with what many consid- ®rs were to be discouraged this to consumers would be ledtic
er to be beef prices that are too y ear over the future prospect ed, reflecting the increased
high, we point out also that cat- for cattle prices, they might quantity of beef in the market,”
tie producers and feeders have start to liquidate some of their he said.
complained just as vigorously present breeding herd This example of the
over the nast seveial vears would result in an immediate JNO exa ™P je or rue
°y er . p seveiai yeais . . fb f goose and the golden eggs has
about their puces being too mciease in the supply ot oeet ever emerged in real i. fe >.
low,” he said m the market, and prices would, evei ein eigeu ieai me
Beef demand in all iccent , at onc !’ be lowei ’. But f yeai ’’ or DeGraff said that an expand
years, he reported, “has been so two ’ three in the futuie few- ed cow herd 1S the only means
gieat that constantly increasing f 1 calves will have been boin. available for piovidmg more
supplies have been requited to fewer fe <* wl , hav f bee ” beef for a giowmg population
hold prices at a stable level” maiketed, the beef supply will and to continue the upwaid
06 16C1UC6Q then pi ices to tiAnr? in npr cimnlv
Domestic beef production for consumers will have moved pro
-1969 is estimated in excess of portionately higher “These cows will not be added
21 billion pounds, 56 pet cent “Second, if produceis this if farmers and lanchers become
above that for 1955 Per capita year aie encouraged instead of discouraged with their piospec-
has usen from 82 discouraged about the future tive cost-price outlook,” he said.
pounds in 1955 to 104 pounds foi prospects for cattle prices, they
1969 could be expected to respond by
| DeGraff, a foimer piofessoi
of food economics at Cornell
Umveisity, said that cattle
prices have to lise if beef sup-
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