By Michael Marks
The U.S. contains the fewest cattle since 1951, which is pushing beef prices up. Expanding the herd has been complicated for ranchers, however.
Although the U.S. cattle population has dropped for six straight years, industry watchers like Derrell Peel think the herd could shrink even more.
“We still don't know for sure that we actually have a low in place yet,” said Peel, an extension livestock and marketing specialist at Oklahoma State University.
The U.S. Department of Agriculture reported in January that the country’s cattle population was 86.7 million, its lowest level since the early ‘50s. At the same time, the price ranchers receive for their animals has risen.
“We've got record high [cattle] prices. That's to provide incentives for rebuilding the herd. But at this point in time, we're not seeing that happen,” said Peel.
The small cattle population contributes to high beef prices in grocery stores. The average price of ground beef reached $6.89 per pound earlier this year, setting a record. The USDA estimates beef prices will likely rise 10% through the rest of the year.
Despite those high prices, ranchers are not growing their herds.
Multi-year drought in major cattle-producing states such as Nebraska, Oklahoma, and Texas have kept herd size down. The high cost of doing business and the reemergence of the New World Screwworm have also contributed to the trend.
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