Where’s the beef?
Well, it’s dwindling in the U.S.
Steaks are low: The U.S. beef cow inventory is the lowest it’s been in more than 60 years, at 28.2M. Cow-calf operators have been facing drought, high feed/input prices, and high cull cow prices.
Cash or calf: Even though pasture conditions and feed costs are improving with better weather, the market is still favoring cattlemen and women sending calves and heifers to feedlots, rather than retaining them for their herds. Currently, there’s a $300 upside to selling a calf instead of raising it.
Bring back cattle country: Experts say it could take years to rebuild the U.S. cattle herd. CoBank says it could be 2026 or 2027 before heifer retention rates regain hoofing. Some analysts say it all depends on whether we’re going through the big D—and we don’t mean Dallas. Drought. If it gets worse, herd liquidation is likely. But here’s hoping for moisture improvements, like there have been in Nebraska, Kansas, Oklahoma, and Texas (there’s a lot of cattle in these states). There are still only two ways herd expansion will happen: slow or slower.
Age before bovine: As farmers and ranchers age, the financial impacts of the industry may have caused a few more hairs to turn gray. The stress of the market over the past four years, especially for part-time cattlemen and women, may spur a few more livestock trailers at the sale barn.
Pricey for packers: This herd contraction is rough for meatpackers, who lost nearly $100 per head throughout 2023 and 2024. This ultimately impacts the price of meat at the grocery store. And with food prices being a top four criteria on buying protein, beef may be missing from both pastures and dinner plates.
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Congress to EPA: What’s Your BEEF with Meat Packers?
The Environmental Protection Agency (EPA) is considering new regulations that take aim at meat and poultry processors.
And some members of Congress have a BEEF with the EPA’s proposals.
The proposed rules: In late January, the EPA released the details of its proposed “Clean Water Effluent Limitations Guidelines and Standards for the Meat and Poultry Products Point source category.”
Huh?
Basically, the EPA formally published its proposals to combat wastewater contaminants that come from slaughterhouses.
Okay… that makes more sense.
At the heart of the rules proposal is a concern from environmental groups about nitrogen and phosphorus pollutants that originate from slaughterhouses. In some cases, the wastewater goes directly into waterways. In other cases, the water goes to municipal wastewater treatment facilities.
But not everyone is on board with the EPA’s suggestions…
Congress responds: Last week, two U.S. representatives—Eric Burlison (MO) and Ron Estes (KS)—pushed back against the EPA and introduced the “Banning EPA’s Encroachment of Facilities (BEEF) Act.” If passed and signed by President Biden, the law would prohibit the EPA from finalizing, implementing, or enforcing the rule.
According to the lawmakers, the proposed rules place undue burden on small processors—costs that can be absorbed by larger companies.
Soundbite: “The… proposed regulation isn’t just an attack on family-run small businesses, it’s an attack on rural communities,” said Burlison. “These meat and poultry processors are the lifeblood of our communities. The BEEF Act… lets these hardworking Americans do what they do best, produce safe, affordable food for our families.”
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