denoginnizer
Well-known member
Will the hurricane damage effect the price of beef?
Hurricane and beef prices
- Thread starter denoginnizer
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Andrew
Well-known member
I think the price of beef will be affected. Beef is an elastic commodity. In other words, the demand for beef will change marginally with an increase in price.
Beef prices haven't really changed because of the hurricane BUT, because of gas prices (and other areas affected by the hurricane), the available money for beef has.
In other words, consumers have a set amount of money set aside for expenditures, of which gas and food are a part of. If something as inelastic as gasoline goes up in price, money has to be squeezed making it unavailable for other items such as food. It just so happens that the great majority of America is non-vegetarian. People will have to use the diminished cash set aside for meat among the alternatives, from which beef is the most expensive.
I just went to the store with the intent of buying a good chunk of roast to cook tomorrow. On the way I had to fill up with $3.10/gal gas. After I got hit with the gas, I felt like spending less money on meat. My options were beef at $4.99/lb, chicken at $1.00/lb and pork at $1.99/lb. Guess which one I chose? I consider myself a good cook and I can make just about anything taste good. I went for a pork shoulder and some chicken tighs. (Maybe I should just keep a calf for myself and butcher it.)
And I'm a beef producer!!!....... and an economist by education.
I hate to even think it, but I think beef prices will decrease because of an decrease in demand fueled by an increase in demand for beef substitutes such as chicken and pork.
I really hope I'm wrong.
Beef prices haven't really changed because of the hurricane BUT, because of gas prices (and other areas affected by the hurricane), the available money for beef has.
In other words, consumers have a set amount of money set aside for expenditures, of which gas and food are a part of. If something as inelastic as gasoline goes up in price, money has to be squeezed making it unavailable for other items such as food. It just so happens that the great majority of America is non-vegetarian. People will have to use the diminished cash set aside for meat among the alternatives, from which beef is the most expensive.
I just went to the store with the intent of buying a good chunk of roast to cook tomorrow. On the way I had to fill up with $3.10/gal gas. After I got hit with the gas, I felt like spending less money on meat. My options were beef at $4.99/lb, chicken at $1.00/lb and pork at $1.99/lb. Guess which one I chose? I consider myself a good cook and I can make just about anything taste good. I went for a pork shoulder and some chicken tighs. (Maybe I should just keep a calf for myself and butcher it.)
And I'm a beef producer!!!....... and an economist by education.
I hate to even think it, but I think beef prices will decrease because of an decrease in demand fueled by an increase in demand for beef substitutes such as chicken and pork.
I really hope I'm wrong.
