Consistent drought has prevented the national cattle herd from rebuilding, leading to the lowest cattle inventory in decades.
Derrell Peel, Oklahoma State University Extension livestock marketing specialist, says less supply and strong consumer demand has caused the price hike… and now a drop in production has made supplies tighter, pushing prices up even more.
Peel says it will take a while for the national cattle herd to grow.
“If you're not familiar with the beef industry, you don't turn this thing around rapidly. Just the nature of cattle production is a slow process," Peel said.
Aside from uncertainty around tariffs, Peel says he expects those prices to stay high simply because there will be less beef.
