“Consumers are going to pay more because we’re going to have less beef,” Anderson said. “Fewer cows, calves, less beef production and increasing exports.”
The U.S. Department of Agriculture estimates that beef prices will increase up to 5.5 in 2012, in part because the number of cattle has declined. That follows a 9 percent increase in beef prices in the past year.
LUBBOCK (AP) — The worst drought in Texas’ history has led to the largest-ever one-year decline in the leading cattle-state’s cow herd, raising the likelihood of increased beef prices as the number of animals decline and demand remains strong.
Since Jan. 1, the number of cows in Texas has dropped by about 600,000, a 12 percent decline from the roughly 5 million cows the state had at the beginning of the year, said David Anderson, who monitors beef markets for the Texas AgriLife Extension Service. That’s likely the largest drop in the number of cows any state has ever seen, though Texas had a larger percentage decline from 1934 to 1935, when ranchers were reeling from the Great Depression and Dust Bowl, Anderson said.
That extra supply could help meet increased demand from China and other countries, but the loss of cows likely will mean fewer cattle in future years.
