US Cattle Herd Shrinks to Decades-Low, Beef Prices Soar

The country's cattle herd has shrunk to its smallest size in decades, with the number of head of cattle falling to approximately 89 million in 2024, down from 95 million in 2020. Beef prices have been soaring this year, with hamburgers and steaks becoming the latest flashpoints in the political debate over higher food prices. According to Bill Bullard, CEO of R-CALF USA, a trade association for independent cattle ranchers, the decline in the domestic beef supply can be attributed to a combination of factors, including drought and surging feed costs. Bullard stated, "The drought has had a devastating impact on the cattle industry, with many ranchers struggling to find adequate feed for their animals. At the same time, the cost of feed has increased significantly, making it even more challenging for ranchers to stay afloat." The lasting impact of consolidation in the meatpacking industry has also contributed to the decline in the domestic beef supply. In recent years, several large meatpacking companies have acquired smaller operations, leaving fewer options for cattle ranchers to sell their animals. Bullard noted, "The consolidation of the meatpacking industry has led to a lack of competition, which has resulted in lower prices for cattle and higher prices for beef at the consumer level." The impact of the decline in the domestic beef supply is being felt across the country, with many consumers facing higher prices for beef products. The situation has also sparked a heated debate over the role of agriculture in the US economy and the need for greater support for independent cattle ranchers. As Bullard pointed out, "The decline of the cattle industry is not just an economic issue, but also a social and environmental one. We need to find ways to support our ranchers and ensure that they can continue to produce high-quality beef for American consumers." In an effort to address the decline in the domestic beef supply, some lawmakers have proposed legislation aimed at increasing support for independent cattle ranchers. However, the proposals have been met with resistance from large meatpacking companies, which argue that they are already providing adequate support for the industry. As the debate continues, it remains to be seen how the situation will unfold and what impact it will have on the US cattle industry. The current status of the US cattle industry remains uncertain, with many experts predicting that the decline in the domestic beef supply will continue unless significant changes are made to the industry. Bullard emphasized, "We need to take a closer look at the policies and practices that are driving the decline of the cattle industry and find ways to support our ranchers and ensure that they can continue to produce high-quality beef for American consumers."