Cattle prices continue to be on a wild ride as calves and yearlings bring unbelievable record prices, and high consumer demand is able to back them.
These are especially exciting times for cattle producers and feeders. In fact, during the week of Sept. 15, lightweight steer calves brought over seven dollars a pound while 1,000-pound yearling steers brought $3.35 a pound.
I’ve also heard, besides cattle producers and feeders, processors are making some money as well. With high prices for inputs, this is good to hear.
Another positive for the industry is, instead of calling beef “beef” the press and the public have started referring to it as protein.
Consumers are beginning to realize beef is a great source of protein, and it has really caught on for those who diet. Who would have thought the public would view lean beef cuts as “diet food?”
In a Sept. 16 article, Mike Miller of CattleFax, writes, “The latest U.S. Department of Agriculture (USDA) Economic Research Service (ERS) data shows notable changes in U.S. protein trade compared to a year ago. Overall, exports of major proteins are trending lower, while imports, especially of beef, are climbing sharply.”
According to Miller, pork exports slipped two percent from last year, down 99.5 million pounds. Beef exports saw a larger decline, falling nine percent or 165.3 million pounds.
Broiler chicken exports dipped three percent, a loss of 123.7 million pounds, and turkey exports were hit hardest, plunging 16 percent or 43.2 million pounds. Altogether, total protein exports are down four percent, representing a 418.9-million-pound decrease.
Miller continues, “While exports are softening, imports are moving in the opposite direction. Beef imports surged 30 percent, an additional 789.8 million pounds over last year. Pork imports were down slightly by four percent, or 30.2 million pounds. Combined total protein imports are up 20 percent so far this year, equaling an extra 740 million pounds.”
While an increase in imported beef – mostly used for ground beef – may mean better prices for consumers, the U.S needs to be very careful which countries beef is imported from.
Consumers also need to realize, in the last 20 years or so, the quality of beef cuts has improved. This is a result of cattle producers using better genetics on the ranch.
Ranchers have found using better genetics also gets them a higher price for the cattle they sell, and everyone in the meat business knows improved genetics means higher-quality cuts of beef. We’ve been seeing more Prime beef at restaurants, and more of these cuts are also available at grocery stores.
Quality grade improvements and consistency in U.S. beef products have been major success stories.
We are also seeing consumer loyalty to beef, even with higher prices, at the expense of other proteins. Numbers show monthly fresh beef prices and hourly wages are in lock step with each other, which should help.
It is safe to say high beef prices will be around for a couple of years as it takes time for cattle numbers to rise. After that, no one knows. It all depends on the demand for beef.
Dennis Sun is the publisher of the Wyoming Livestock Roundup, a weekly agriculture newspaper available online and in print.
