Consumers have seen skyrocketing prices due to inflation and the pandemic. Prices are rising in many different areas, from rent to groceries. Beef prices aren’t exempt from that either. Thankfully, things have recently taken a better turn for beef consumers. The USDA reported beef prices dropped 0.6 percent in June, and have stayed steady for a few months instead of continuing to rise. However, droughts may impact those prices soon. We’ll explain why in today’s blog. For more on beef industry trends and news, visit our blog.
A lack of summer rain has plagued many parts of the United States, one in particular being the state of Texas. Unfortunately, this is also where many ranchers raise cattle, a whopping 14 percent of the total amount of cattle raised in the United States, which makes it the number one state for cattle production. Droughts negatively impact ranching in a variety of ways, but ultimately this condition will lead to higher consumer prices down the road.
What Happens in a Drought
Lack of rainfall results in dried-up grass and stunted growth in the pasture, so cattle don’t have as much food to eat. This, of course, turns into low weight gain in cattle, since they won’t have as much natural forage. It will cost ranchers more money to care for their herds since they’ll have to supplement feed and pay more to water them and the pastures.
Ranchers will turn to early slaughter to avoid high production costs. This will cause a surplus in the market right now, which could result in lower costs to consumers. However, these will quickly be offset by a rise in costs later on, as ranchers have fewer cattle to slaughter at proper maturity. Consumers can avoid these problems by shopping local and supporting their community. Local ranches like Dark Hammock Legacy Ranch avoid high production costs by selling directly to the consumer and can pass those savings on to you.
To buy fresh grass-fed beef directly from Dark Hammock Legacy Ranch and avoid nationwide price hikes, visit our website.