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Beef prices surge nearly 12% as the US cattle herd hits 70-year low
Fox Business • • business
Key Points:
- American consumers are experiencing high beef prices due to a historic cattle shortage, with the U.S. cattle herd at its lowest in over 70 years, primarily caused by drought and increased operating costs for ranchers.
- Beef prices have risen significantly over the past year, with ground beef up 12.4%, beef roasts up 13.8%, and steaks up 11.4%, according to recent CPI data.
- Tyson Foods reported a $138 million loss in its beef segment, citing constrained supply, higher input costs, and a 15.9% decline in sales volume despite a 12.1% price increase.
- The USDA plans to resume cattle imports from Mexico in late August after a suspension due to the New World screwworm outbreak, starting at the Douglas, Arizona port and focusing on low-risk Mexican states Sonora and Chihuahua.
- Tyson Foods' CEO noted that the reopening of the Mexican border may improve long-term cattle availability but will not significantly impact the current fiscal year, emphasizing ongoing efforts to manage supply challenges.
