U.S. Cattle Inventory Hits 73-Year Low Amidst Regulatory Concerns and Bidenomics Impact
Source: The DairyNews
The Environmental Protection Agency (EPA) has set its sights on methane regulations, raising concerns about its potential role in the global "War on Meat." While these regulations are yet to be enforced, the nation's cattle inventory has plummeted to its lowest levels in 73 years, prompting ranchers to make tough decisions.
Over the years, the cattle supply has steadily declined, reaching 87.2 million head this year, down from approximately 110 million in 1998. Extreme weather, exacerbated by recent years of harsh conditions, has emerged as a primary factor in this decline. Professor Darren Hudson from Texas Tech notes that per-capita meat consumption has dropped, contributing to the overall downward trend, although total meat consumption remains stable due to population growth.
Bidenomics is also cited as a contributing factor to the low beef supply, with John Boyd, Jr., president of the National Black Farmers Association, expressing concern about the decline in beef production. The U.S. Department of Agriculture (USDA) reports that nationwide beef cattle inventory is at its lowest since the 1970s, reaching 28.2 million this year, down 2% from the previous year. Overall cattle and calf inventory is at its lowest since 1951.
Persistently high input costs, inflation, and a three-year drought are additional challenges facing the cattle industry. While the cattle on feed supply is large, the calf crop and beef heifers held for replacement are historically low, impacting inventory growth in the coming years. This situation presents both opportunities for profitability in 2024 and potential record-high beef prices for consumers.
As domestic consumer demand for beef remains strong, the ability and willingness to withstand higher price levels in 2024 will be crucial. The impending threat of additional regulations adds further uncertainty, potentially limiting the selection of high-quality protein for American consumers.
Bidenomics is also cited as a contributing factor to the low beef supply, with John Boyd, Jr., president of the National Black Farmers Association, expressing concern about the decline in beef production. The U.S. Department of Agriculture (USDA) reports that nationwide beef cattle inventory is at its lowest since the 1970s, reaching 28.2 million this year, down 2% from the previous year. Overall cattle and calf inventory is at its lowest since 1951.
Persistently high input costs, inflation, and a three-year drought are additional challenges facing the cattle industry. While the cattle on feed supply is large, the calf crop and beef heifers held for replacement are historically low, impacting inventory growth in the coming years. This situation presents both opportunities for profitability in 2024 and potential record-high beef prices for consumers.
As domestic consumer demand for beef remains strong, the ability and willingness to withstand higher price levels in 2024 will be crucial. The impending threat of additional regulations adds further uncertainty, potentially limiting the selection of high-quality protein for American consumers.
