Market Morsel: US Processors and Covid-19

Market Morsel

In April 2020 Covid-19 infections impacted beef and pork processors in the USA. This was quite widespread and impacted processing capacity across the country. Reports of production falling by 30-35% despite the order by President Trump that processors were to remain open.

Impact on prices:

• Finished cattle prices eased by an average of 20% over April
• The beef cut out price rallied by 100% as shortages of product and panic buying of meat set in
• Pig prices dropped by an average of 50% from April to June
• Many pigs were culled and not sent to processors due to the significant backlog of animals

It took about a month for the price situation to return to normal.