What a bifurcated economy and New World screwworm could it mean for beef producers

By Mike Estadt, OSU Extension Educator, Pickaway County

The U.S. economy is sending mixed signals. Nationally, about 20% of households continue to spend freely on travel, restaurants, vehicles, and higher-end foods. The other 80% of households are watching every trip to the grocery store, trading down, buying smaller packages, buying on sale, or shifting to lower-cost proteins. Economists often call this a bifurcated economy.

Bifurcated means split into two parts. In the food case, it means one group of consumers still has enough disposable income to buy steaks, branded beef, restaurant meals, and premium cuts. Another group feels squeezed by housing, higher gasoline prices, insurance, utilities, and food inflation. They still need protein, but they become more price sensitive.

That split matters to cow-calf producers because beef demand is not one simple market. A strong average beef price does not mean every consumer is equally able to buy. Premium beef demand may hold up well while value-oriented shoppers shift toward ground beef, chicken, pork, or sale items.… Continue reading