Beef producers and the consumers they serve need to be thankful for each other.
I think each party understands the other better than they used to. Today, they have a lot in common as both are inflation weary, both are consumers at grocery stores and, of course, both eat beef.
But we all know it goes further than that. With weight loss medication making losing weight easier, consumers are looking for a high-protein diet and many have realized beef is the answer – a fact ranchers and farmers have known for years.
Another important fact consumers are realizing is, with proper grazing, cattle and sheep can improve the range they graze, benefiting both private and public lands and wildlife.
Some are emphasizing how land stewardship moves beef and lamb from a commodity to a strategic asset.
This realization drives some anti-meat, anti-grazing and animal rights activists crazy as it is harder for them to get their story out.
Most farmers and ranchers have tangible proof of improvement on their land throughout the years. Without these improvements, many would be out of business.
Today, I think most consumers know beef demand, drought, low margins and record-low numbers of cattle are what is driving higher prices of beef. Hopefully they realize it takes a few years for cattle numbers to cycle higher.
There are no quick fixes in the cattle business despite what some politicians claim. They just create an uncertainty which lowers prices of beef – but only at the ranch and farm level.
I see where some grocery stores are lowering the price of beef since consumers are buying other meats. Still, beef makes up 55 percent of meat sold at grocery stores.
According to the Bureau of Labor Statistics’ latest consumer inflation update, grocery beef prices dropped in August for the second month in a row while the cost of other meats rose.
The overall food index rose 0.1 percent in August, with food inflation staying the same over the last four months. Still, food prices are 2.7 percent higher than a year ago.
Prices for food at home, which equates to all food, were unchanged last month. Food at home prices have barely risen over the last four months, but are 2.2 percent higher than a year ago.
Food away from home, including dine in, takeout and delivery food service, rose 0.3 percent in August, which is 3.4 percent higher than last year at this time.
Beef remains 5.9 percent more expensive over the year. Ground beef prices, which account for 52 percent of all beef products, were unchanged last month but remain 7.2 percent higher than a year ago.
Steak prices dropped 1.5 percent last month but were four percent above last year’s prices at this time.
This goes to show the popularity of ground beef and why packers are always looking for beef trimmings.
No one knows what beef markets will look like in a couple of years for both producers and consumers, but I hope high-protein, healthy diets last a long time.
Dennis Sun is the publisher of the Wyoming Livestock Roundup, a weekly agriculture newspaper available online and in print.
