The beef industry is riding a turbulent roller coaster of supply shortages and soaring demand.
Multiple factors are contributing to this dynamic, including droughts, fluctuating weather patterns, rising cattle-raising costs, health challenges among cattle, and an unwavering consumer appetite for beef, despite higher prices.
Ground beef prices hit a record $6.34 per pound in July, while uncooked steaks rose to $11.88 per pound, according to the U.S. Bureau of Labor Statistics.
A year ago, those prices were $5.62 and $10.86, respectively.
Greg Stuefen, a local cattle producer, explains that a large portion of beef on U.S. shelves is imported, which drives up costs and creates occasional shortages.
“The U.S. is the world’s largest beef producer, but right now, the market is favorable for producers, though consumers are paying more,” Stuefen says.
Jesse Weber, a cattle farmer for nearly 30 years, describes the current beef prices as “crazy” and “a little scary.” He acknowledges the business benefits but is concerned about the future.
“The worry is whether consumers will keep buying. The high prices are a result of low cattle supply, and getting into this business isn’t easy. It’s labor-intensive, and many ranchers are leaving the industry,” Weber notes.
Beef expert Andrew Coppin, who works with producers across the country, adds that consumer demand for beef remains strong. “American consumers’ passion for beef is real and growing,” Coppin says. “However, if costs keep rising, the situation could change.”
Several external factors are adding pressure to the beef market. The closure of the Mexican border to beef cattle imports has exacerbated the shortage, cutting off the usual flow of about a million cattle annually from Mexico.
Additionally, the risk of higher tariffs on beef imports from Brazil could also push prices even higher.
Ranchers are struggling to rebuild herds due to rising demand and unpredictable weather. “Weather volatility is a big factor,” says Coppin.
“With extreme droughts and floods, ranchers must decide whether to expand their herds, which requires enough pasture and costly feed. Input costs for ranchers are high, even though beef prices are up.”
For now, it’s unclear how long this volatile market will last, but consumers remain loyal to beef.
“We hope to find a balance going forward, but right now, it’s all about supply and demand,” Weber concludes.
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