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Beef Imports Aren't Helping the Larger Problem
Newser • • business
Key Points:
- The US cattle herd has shrunk to its smallest size in approximately 75 years due to drought, high feed and fuel costs, and pandemic-related disruptions, causing beef prices to reach record highs.
- It takes nearly two years to raise new cattle for market, meaning supply shortages and elevated prices are expected to persist well into the next decade.
- Major meat-packers like Tyson, JBS, and Cargill are experiencing financial losses, closing plants, and permanently reducing processing capacity, which poses a long-term threat to the beef industry.
- Ranchers are hesitant to rebuild herds amid rising debt, higher trucking costs, and competition from cheaper imports, particularly from Brazil, which have had limited impact on lowering consumer prices.
- Some businesses are already adjusting their offerings, such as a Texas smokehouse cutting brisket from its menu due to its disproportionately high grocery costs.
