By Jamie Martin
The US beef industry is facing a slow recovery in rebuilding its cattle herd, with projections suggesting it may not reach 2023 levels until 2026 or 2027.
According to a recent report by CoBank, high prices for young cattle are leading breeders to sell rather than retain females for herd rebuilding. This decision is significantly influenced by the large number of small producers, who own 25 percent of the US beef cow inventory but often don’t rely on these animals as their primary income source.
The ongoing drought has exacerbated the situation, damaging pasture conditions and reducing cow retention rates. This environmental challenge, combined with economic incentives to sell, has contributed to the US experiencing its fifth consecutive year of declining beef cow numbers—a trend not seen since 1961, as per USDA data.
As fewer cattle enter US processing plants, beef and cattle prices remain elevated, affecting everyone from cow-calf owners to meatpackers, the latter of whom are experiencing tighter margins with losses close to USD 100 per head as of July 2024.
Meanwhile, countries like Brazil and Australia are capitalizing on the reduced US supply, increasing their exports and strengthening their positions in the global beef market.
Photo Credit: istock-123ducu
Categories: National