The U.S. beef cowherd has reached a record low, according to a new report from the USDA. The report also shows that cattle on feed are down 2%, and per capita beef consumption is expected to drop 2.5% in 2023.
The decline in the beef cowherd is due to a number of factors, including high feed prices and low profits. As a result, producers are sending fewer heifers to the feedlots, and more heifers are being slaughtered.
The decline in cattle inventory is expected to lead to higher beef prices in the near future. The USDA is forecasting that quarterly prices for slaughter steers will average $181.66/cwt and $182.12/cwt for the last two quarters of 2023.
The high prices are not expected to last forever. The USDA is forecasting that per capita beef consumption will drop 8.5% in 2024, as consumers adjust to higher prices.
The report suggests that the beef market is facing some challenges in the near future. However, the long-term outlook for the beef industry is still positive. The USDA is forecasting that beef production will increase in 2025, as producers rebuild their herds.
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Categories: Michigan, Livestock, Beef Cattle