Author: Steve Kay
Published on: January 17, 2024 (Meat + Poultry)
According to Steve Kay's article published on January 17, 2024, the US beef industry is experiencing one of its largest two-year declines in production. This decline will have significant implications for consumers, cattle producers, and beef processors. Higher retail prices are anticipated for consumers, while processors may struggle to maintain profitability. Cattle feeders are expected to face higher live cattle prices due to ongoing beef cow herd reduction.
This year poses additional challenges for packers, especially with the continued reduction in US cow-calf producers' herds. Despite expectations for a rebuild in the beef cow herd, signs of recovery did not materialize in 2023. The reduction in beef production is attributed to ongoing challenges, including drought and economic factors.
JBS Beef North America reported a healthy profit in its 2023 third quarter, but the US beef division foresees challenges due to a shortage of cattle for slaughtering in the coming year. The US Department of Agriculture forecasts a 4.2% decrease in 2024 beef production compared to 2023.
The reduction in beef production will impact red meat and poultry production, with estimated per-person consumption decreasing. Despite the decline, several entities plan to build new beef processing plants in the United States. However, industry over-capacity issues and a lack of meaningful increase in beef cattle numbers raise concerns.
For the full article, please visit [Original Article].
In conclusion, the challenges faced by the US beef industry, as highlighted by Steve Kay, point towards significant shifts.
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