Consumer finance industry leaders say beef products and services are among the sectors they expect to see beef prices rebound in the next few years.
“The demand for beef has been growing over the past few years, but it is expected to be on the rise again in the coming years,” said Mike Meehan, president of the Canadian Association of Financial Institutions.
“I think the growth will be very strong in the first half of 2019 and into the second half of 2020.”
Meeham said the sector’s main drivers are higher spending on credit card purchases, lower credit card interest rates and a better outlook for the U.S. economy.
“When people are paying down their credit cards and making payments, there’s an increase in demand for credit card products,” Meegan said.
Beef products are already seeing a resurgence in popularity. “
For consumers, they are looking for that comfort food, they’re looking for an alternative that’s a bit healthier.”
Beef products are already seeing a resurgence in popularity.
Meehans prediction is that the beef industry will see its annual consumer spending increase by nearly $10 billion over the next three years.
In 2018, consumer spending on beef was up $9.4 billion, and spending on dairy products was up another $8.4 million, according to the CIFI.
Beef producers have already announced their intention to increase production in 2019, and beef prices are expected to climb as well.
Beef production is expected for the 2019-20 growing season to reach more than 30 million head.
The U.K.’s National Farmers’ Union said it expects a rise in beef production, and the industry is also looking to expand the size of the beef-producing operation in the U, U.P. and U.I.
As the global beef market continues to expand, the demand for cattle products is expected grow by as much as 10 per cent annually, according the CFPB.
The CFPI expects that beef producers will be able to increase the size and scope of their operations in the second part of 2019.