Soaring Beef Prices in the US Tied to Drought and Demand
Red meat prices in the US are hitting record levels due to surging consumer demand and a declining cattle population.
Mary Skinner, a New York shopper, needs red meat for medical reasons. “Now, I mostly buy cheaper ground meat,” she says.
General inflation stands at 3.7% in the US. However, prime beef prices have surged 9.7% this year alone. In fact, steak prices have leapt 27% in three years.
To cope, a Connecticut man uses ButcherBox, a meat delivery service. “I spend about $150 to $160 every few weeks,” he reveals. Clearly, prices are on the rise.
Meanwhile, some people now opt for cheaper, slow-cooking meat. They do this to make their food last longer.
Next, let’s look at the cattle shortage. The US has fewer cattle now than in decades. Scott Brown, a Missouri professor, blames severe droughts. Especially, droughts in the large US plains.
Cattle Decline
The USDA reports a 10% cattle decline in five years. Less rain means less pasture. Therefore, the cost of animal feed goes up.
Slaughter rates this year have hit an all-time high. Ross Baldwin from AgMarket.Net says this is the highest rate since the early 1980s.
Yet, red meat demand is also up. According to the USDA, Americans ate 0.3% more beef this year compared to last year.
In conclusion, Ross Baldwin doesn’t see this trend changing soon. He says it’ll take three more years for cattle numbers to grow.
Until then, high demand and low supply will keep pushing prices up.
David Anderson, another expert, warns that using calves for breeding now may limit meat production later.
So, prices could rise even more. Finally, finding enough pasture for more cattle remains a challenge, making future price drops unlikely.
With information from AFP
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