080113 Economy A Concern For Beef ProducersJanuary 21, 2007The chief economist for NCBA is expressing concern about how a downturn in the economy will affect beef demand. Gregg Doud said less disposable income means consumers could reduce meat purchases. Compounding the problem are rapidly rising input costs for livestock producers. Doud said a substantial increase in corn prices has directly contributed to a 17% decline in feeder cattle futures since Labor Day. He suggested feed costs, large competing meat supplies and the lack of normalized trade with Korea and Japan are hitting beef producers’ pocketbooks hard. Both the Bush Administration and Congress are considering emergency economic stimulus packages. A White House plan reportedly would provide one- time rebates of up to $800 for individuals and $1,600 for married couples. There also is discussion about tax breaks for business investments. Federal Reserve Board Chairman Ben Bernanke is not forecasting a recession. The term he used to describe the economy this week was “slow growth.”
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