Beef prices have hit a recent high due to the continued drought that has affected the Western U.S. Although improvements have been seen since September, the concerns still linger. And as beef production goes down, retail prices will go up, which may cause consumers to switch from beef to less expensive protein choice.
Mark Svoboda, a climatologist with the National Drought Mitigation Center in Lincoln, Neb., told Cleaveland.com that less than 45% of the country is in some sort of drought, with numbers improving by 21% since last year.
The numbers may be improving, but due to a dry winter in the Western part of the country, lack of water supply may cause 46% of the nation's cattle to remain in drought conditions causing prices to surge.
There is a possibility that some states, such as Arizona, Colorado and New Mexico, will see more rainfall in July, but that won't be enough to recover pasture lands for cattle to graze.
A February 2013 USDA report revealed the U.S. beef cattle herd has hit the lowest point since 1962—a factor that will hit consumers in the pocketbooks. According to the report, total U.S. cattle numbers have dropped to their lowest level since 1952. In fact, beef cow numbers dropped by 3% last year and are down 11%, or 3.6 million head, since 2007.
