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Understanding the pricing of beef

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It’s something which isn’t often easy to understand. How the pricing systems work for our commodities. Consumers, including farmers, see the prices for their products in the stores, but those don’t always seem to jive with what producers are making in sales. This is the same for the beef industry. Today, we try to get a little clarity on how it all works.

The pricing of beef products is broken down into three parts. Certified Angus Beef’s Vice President of Production Mark McCulley explains.

McCulley says cut-out spreads establish value differences between commodity and premium beef.

McCulley says the biggest price affecters are a record beef supply and herd inventory.

Beef producers are doing all they can to keep up with the increasing demand for quality products.