What’s causing Rising
Beef Prices?
The price of beef has hit an all-time high and experts
expect prices to rise even more throughout 2012 and possibly beyond. Multiple
factors have influenced the rise in beef prices:
v Last
Summer’s Drought in Texas & Oklahoma:
~Almost a quarter of American
cattle are raised in these states and the drought provided little pasture for
cattle to graze and caused 4 million acres to be burnt in wildfires
~Farmers were forced to sell,
not only their feeder cattle, but also the mamas to make ends meet. Selling
moms means no young cattle to raise
~U.S. Beef exports are high
and recovering the beef supply is not a quick fix due to gestation and time to
grow; so supply will be lower for at least 18-24 months
v Supply
is low and demand is high!
~This textbook economic
situation means prices rise~
v Corn
is High:
~Market cattle eat corn which
helps create internal marbling for higher USDA grades.
~Corn prices have lowered
slightly, but are still high because of demand for not only food but ethanol.
~Bottom line, it costs more
to raise the cattle and costs are passed on to the consumers.
Poole’s Meat Market
will continue to sell the highest quality we can get our hands on, Chairman’s
Reserve, and offer Bundle Meat Packages to stock your freezer. Ask for a
brochure today!
