Decline in U.S. Cattle Could Spur Record Beef Prices

The U.S. cattle inventory fell to the smallest size in 60 years as of Jan. 1, dropping more than expected, after a drought in the southern U.S. scorched pastures, spurring ranchers to shrink herds.

Beef and dairy farmers held 90.77 million head of cattle as the year began, down 2.1 percent from a year earlier, the U.S. Department of Agriculture said Friday. That’s the smallest herd since 1952, the USDA said.

Texas, the biggest cattle-producing state, had its driest year on record in 2011. The drought destroyed pastures, forcing ranchers to sell or slaughter animals rather than incur high feed costs. The price of corn, the main ingredient in cattle feed, reached an all-time high in 2011.