US Beef Prices Hit Record Highs, Up 12% as Cattle Herd Falls to Lowest Since 1951
Updated
Updated · BBC.com · Aug 5
US Beef Prices Hit Record Highs, Up 12% as Cattle Herd Falls to Lowest Since 1951
3 articles · Updated · BBC.com · Aug 5
Summary
US supermarket beef prices are 12% above a year ago, driven by the smallest national cattle herd since 1951 after drought and disease cut supply.
Record calf prices — about $2,500 for a 600-pound animal, up from $2,000 two years ago — are not lifting rancher profits because feed, fencing, trucks and water costs have also surged.
Feedlots and meatpackers are also being squeezed: Tyson said it lost more than $500 million on beef in the first half, while smaller plants report paying up to 60% more for cattle and running below capacity.
Restaurants have raised menu prices only so far — one Omaha burger rose to $11.95 from $8.95 — because consumers can switch to chicken or imported beef.
Relief is likely to be slow because rebuilding the herd takes years: a heifer needs about two years to produce a calf, and that calf roughly another year to reach slaughter weight.