Value of livestock declines 20 to 40%, local farmers see effects

KANSAS (KSNT) – The coronavirus pandemic is now affecting our food supply, and the livelihood of livestock producers.

According to Dr. Glynn Tonsor, an agriculture economist with Kansas State University, American consumers are more likely to buy meat when the economy is strong. With the uncertainty that comes with the coronavirus pandemic, the value of livestock has dropped anywhere from 20 to 40% depending on the species and the weight of the animal.

Steve Porubsky is a Silver Lake farmer and rancher. He typically sells his calves by mid-March, but he’s still holding on to about 200 of them as of mid-April. That’s because he’s seen the low price commercial buyers want from him first hand. Right now he’s keeping his calves in Silver Lake.

Dr. Tonsor said there are three main places that the cattle and beef industry sees it’s product go: supermarkets, restaurants and to exports.

While the demand for ground products is high, and you may notice these products are hard to find at supermarkets, high quality steak items that typically go to the food service industry have trouble selling.

As for exports, Tonsor says that one of his concerns is the idea of populism in economics. Prior to the outbreak, the discussion of globalization already existed.

Now with the added complications of the coronavirus outbreak, he says we may hear the argument that the U.S. should not rely on global trade more, but it’s something the livestock industry ultimately depends on to thrive.

For more on Dr. Tonsor’s livestock discussion, click here.