Skip to comments.Beef prices reach highest level since 1987
Posted on 04/12/2014 10:06:35 AM PDT by 1rudeboy
LUBBOCK, Texas The highest beef prices in almost three decades have arrived just before the start of grilling season, causing sticker shock for both consumers and restaurant owners -- and relief isn't likely anytime soon.
A dwindling number of cattle and growing export demand from countries such as China and Japan have caused the average retail cost of fresh beef to climb to $5.28 a pound in February, up almost a quarter from January and the highest price since 1987.
Everything that's produced is being consumed, said Kevin Good, an analyst at CattleFax, a Colorado-based information group. And prices likely will stay high for a couple of years as cattle producers start to rebuild their herds amid big questions about whether the Southwest and parts of the Midwest will get enough rain to replenish pastures.
Meanwhile, quick trips to the grocery store could drag on a little longer as shoppers search for cuts that won't break the budgets. Patrons at one market in Lubbock seemed resigned to the high prices, but not happy.
(Excerpt) Read more at foxnews.com ...
They will get higher because of the things going on in Nevada.
Quantitative easing combined with ethanol. Both ugly non intended consequences of big government.
Better start raising my own.
Result of mandated ethanol use all thank you cards to be sent to senate and congress.
“Result of mandated ethanol use all thank you cards to be sent to senate and congress.”
Most of it is due to severe droughts in pasture/rangeland areas of Texas and other places the cows grazed and produced the calves.
Cow herds were sold off. Takes awhile to save back heifer calves; get the heifers to breeding age; then get calves out of the new cows and grow the calves to market weight in feedlots.
And going even higher.
The heifers, replacement stock for the breeding herd, are being sent to slaughter as the higher price for live beef soars ever more. Only when the supplies range so high as to threaten the price of beef (as demand falls, as it must), will heifers be held back for the breeding herd. But since it takes some five years, from birth to the next generation, for heifers to significantly contribute to the overall herd, the cycles in beef stretch out some eleven years or so from the low demand/falling prices to the high demand/high prices and back down through the cycle again.
There is no way to significantly flatten out that curve without resorting to imports, and that is not a viable option in most instances.
I’m afraid so. If possible try to buy beef from local suppliers.
God is punishing America for the evil of electing and re electing Obama.
Since the core CPI figures that the Federal Reserve uses to calculate inflation — and which are taken seriously by the media, government and financial institutions — don’t include food and gasoline prices, it’s hard to know what’s going on from month to month in the real world.
So when beef prices reach a 25-year record high, not only are we surprised, but we know the Federal Reserve will do nothing to help Americans continue to put pot roast on their tables, even though its job is to maintain price stability, since food inflation is not the Fed’s thing, no matter how out-of-reach beef prices may soar.
Maybe the best way to determine actual inflation is to save one’s supermarket and gasoline receipts and compare them from month to month. If the price of beef, for example, appears to be rising, one can then load up on beef and freeze it to prevent having to pay even higher prices later.
Fat cattle can be held another 30 days adding weight, and change that curve very quickly, which is gong to be what happens.
nothing to see here...move right along...this is not inflation...move right along
Energy prices might get interesting next winter, too.
Some of it is. But dropping milk prices and ethanol which is causing feed prices to skyrocket are important, too.
Oh, and let's not forget the never-ending money-printing at the Fed.
Corn prices are at or below the cost of production.
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The northern states have no drought problem they sell most of the corn for ethanol it’s a cash cow for them but the rest pay the price.
Beef prices are a leading indicator for the slowly progressing inflation.
The democrats are going crazy trying to raise the minimum wage to jumpstart the wage inflation component. Wage inflation is mandatory to creating across the board price increases necessary for general inflation. No cliches about Germany and worthless $$ please. The goal is 7%, not 50% hyperinflation.
The solution to the Obamacare health care price rises is an increase in wages to pay for it. In the general confusion to follow, the Obamacare insurance component will be covered up.