As of right now, beef prices are going up due to the fact that the industry is quite unpredictable. Weather pattern, diseases, increases in the corn price and so much more. In addition, there was a wildfire in the panhandle area of Texas (where 85% of the state’s herd is located) which brough devastation to the rancher’s livelihood and supply. Moreover, inflation is not cooling down any time soon.
This isn’t some one-time thing, either. it’s been going on for years. Take a look at the report of the US department of agriculture. January 1,2024 cattle inventories is at 87.2 million. That is the lowest inventories on record since 2014. As of March 2024, the average price of beef is $5.13 per pound.
Due to the wildfire, prices have nowhere to go but up, because for cattle to become an asset for ranchers, it generally takes 2 or 3 years for calf to become beef production. That’s 2-3 years of feeding and maintenance. And is not like ranchers are getting rich out of the increase prices in beef, ranchers also have cost to cover which are becoming expensive due to inflation.
This is becoming a feast or famine situation in which, so far, has only produce losses and hardship from ranchers to customers.
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