What Can Protein Sector Expect Into 2021? Ag Economist Weighs In

After a very difficult 2020, what’s the expectation for the protein sector as we look ahead to 2021? Oklahoma State University Ag Economist Dr. Derrell Peel says as he looks ahead, COVID-19 remains the big issue.

“As much as we’d like it to be a past issue, it’s not yet a past issue. So, we’re still dealing with it, we’re not quite sure particularly about this winter, and in the first part of 2021, we have to continue dealing with it. We do have vaccine implementation beginning and so we can sort of see a pathway towards an end to this thing. But that’s going to take a few months and certainly, I think the first half of the year is going to be a continuation of what we were dealing with in 2020 from the standpoint of the pandemic.”

And the protein sector is still looking for a rebound in the foodservice market after COVID-19 shutdowns. But, he went on to say the initial shocks to the market caused by COVID-19 are mostly in the past. The backlog of cattle and hogs was a big challenge, and Peel says the cattle market is “largely cleaned up from that.” 

So, are there reasons for optimism in 2021?

“To a large extent, cattle and beef markets ended 2020 on a fairly positive note," Dr. Peel noted. "We did see some price recovery late in the year. Feeder cattle markets, particularly the lightweight calf markets, finished 2020 pretty strong. Fed cattle markets came on pretty strong right at the end of December last year, and beef markets, the wholesale beef market, was up and down a lot through the fall of the year but showed some stability by the end of the year.”

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