The Impact of COVID-19 on United States Meat and Livestock Markets

Abstract

Outlook for United States Livestock and Meat Markets Prior to the Pandemic After a run of low prices for livestock and meat dating back to 2014, 2020 was shaping up to be a bull market for United States livestock interests. African swine fever continued to decimate China’s pig population. As a result, China—the world’s leading meat importer—was poised to increase purchases dramatically through 2020. Moreover, in January 2020 the United States government signed the Phase One trade agreement with China, which promised to end a two-year trade war and dramatically expand China’s imports of United States agricultural products, including pork and beef. At the consumer end of United States meat markets, a strong economy and record low unemployment pointed to increased demand for meat (Badau, 2020). The net result was that, early in 2020, analysts were forecasting increased United States exports of beef and pork as well as high prices for livestock and meat.