As feed grain and beef supplies tighten, some analysts say that Lean Finely Textured Beef (LFTB) could make a comeback in the marketplace.
Don Close, vice president of Rabobank's Food and Agribusiness Research and Advisory group, thinks that the portion of the U.S. beef supply that consisted of LFTB will return to grocers’ meat cases.
“The bottom line is we’ve got a product that’s absolutely wholesome,” Close said in an Oklahoma Farm Report article. “We’ve got a product with an impeccable food-safety history. And we’ve got a product that reduces the cost of lean beef blends in the grocery store. So, if you’ve got those three things in favor of the product, they’re certainly overall supportive.”
Tight supplies have resulted from epic drought conditions across the country, particularly in the Midwest.
“As we see the total of beef supplies contract over the next 18 months to two years, and certainly with the added pressure we’re now seeing with feed grain prices where they are, we’re looking at increasing prices down the road. We simply don’t have the luxury to waste two percent of our overall beef supply,” Close added.