Quote Originally Posted by Midnight1: immigrants bringing their cows into the country? Oddly, treasury secretary claims immigrants bringing diseased cows are responsible for high beef prices. However experts blame Trump tariffs. Immigrants may be confused with criminals involved in smuggling of infected cattle into Mexico.
Experts??? Cattle prices were soaring in 2024. Here is an article from EXPERTS; https://www.fb.org/market-intel/beef-prices-soar-to-record-highs-yet-farmers-struggle-to-reap-the-benefits
Why is beef so expensive?” The answer to this question has been several years in the making.
Pasture conditions began to deteriorate across the United States in 2020. The La Niña-driven drought would press on for the next three years causing pasture conditions to deteriorate and sending prices for feed grains to record levels (Figure 2). At the same time, inflation began to rise, driving up costs for everyone in the United States, including farmers and ranchers. The combination of drought and high input costs compelled farmers to place a higher-than-normal percentage of female cattle on feed for slaughter, rather than keeping them for replacement breeding, resulting in increased short-term beef production but contraction in the cattle inventory.
This contraction has led to the smallest cattle inventory in 73 years and a reduction in the U.S. beef supply. The cattle inventory takes more time to rebuild than other livestock inventories because it takes 18-24 months from a calf’s birth until it is fed to slaughter weight and ready for market.
The crux of this story is the U.S. cattle inventory has decreased to a seriously low level, but the market isn’t providing incentives for farmers to grow the herd again, causing beef prices to rise to record levels. From a business standpoint it may not make a lot of sense to enter the cattle business or expand because, while the cash price for cattle is elevated, increased costs for supplies, along with market uncertainty, have become obstacles to profitability. , and it is uncertain whether the cattle prices two or three years out will reward this investment The U.S. is home to the most affordable food supply in the world , in part because of the risks that farmers and ranchers take to make it so, even when it won’t necessarily pencil out.
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