The U.S. beef industry is enduring what one analyst called “a perfect storm” of both the huge drought and ABC-led attacks on lean finely textured beef (LFTB) that activists hyped by nicknaming the product “pink slime.”
Rabobank’s Don Close warned the impact is a “multi-year issue.” “The ramifications of both of these events will readily impact the future,” he said. Close is the financial firm’s vice president for Food & Agribusiness Research and Advisory in Animal Protein.
According to Close, those financially harmed by anti-LFTB activists include Beef Products, Inc., which makes LFTB, and U.S. fed-cattle producers. But that rolled down hill to customers. “Ultimately, it will go to damage the consumer,” he added.