U.S. Cattle Numbers Hit 50-Year Low, Fueling High Beef Prices
According to the July Cattle on Feed report, recently shared by the National Association of Farm Broadcasters, U.S. cattle numbers have dropped to historic lows, offering little relief to consumers struggling with high beef prices. As of July 1, there were 94.2 million cattle and calves in the United States—marking the lowest mid-year inventory since 1973.
—Dale Sandlin, reporting for Southeast AgNet
This decline reflects a prolonged cycle of herd liquidation that may be beginning to ease, but the effects are still being felt across the beef supply chain. Despite early signs that the liquidation trend might be slowing, production capacity remains severely constrained.
Feedlot Placements Fall to 2017 Levels
The U.S. Department of Agriculture also reported that the number of animals placed in feedlots for finishing before slaughter has fallen to its lowest level since 2017. This steep drop in feedlot placements suggests continued tight supplies in the coming months, which could further limit beef availability and put additional upward pressure on prices.
Short Supply Drives Up Beef Costs Nationwide
Bloomberg News highlighted the broader market implications, stating that the severe cattle shortage in the United States—the world’s largest beef-producing country—is pushing cattle costs sharply higher. This surge in costs has eliminated billions in profits for meat packers and has resulted in record-high beef prices for consumers at grocery stores.
As the industry grapples with these supply-side constraints, analysts and producers alike will be watching closely for further signs of herd recovery. Until then, Americans should expect continued pressure on beef prices at the retail level.