There is less meat on the bone for the beef industry these days. The U.S. cattle population has now fallen to its lowest level since 1951, as cattle farmers face headwinds from drought, wildfires, and government policies that continue to deplete the herd. "This is something that has impacted the beef cattle industry for a number of years now," says Tracy Tomascik, assistant director of the Commodities and Regulatory Division at the Texas Farm Bureau. "The long-term impacts are fewer cattle in the production system, and ultimately the potential for less beef available for consumer use."
That lack of supply inevitably means higher prices for consumers. "We do anticipate across the industry that there will be some more increases ahead, but we're cautiously optimistic that prices won't go up much higher than what they already are," says Tomascik.
There is also a silver lining. "Yes, beef prices are high, but that means that there is extra value in the actual live animals that farmers and ranchers across Texas are selling," says Tomascik. "So that's helpful for the farm and ranch families in our state."
On top of the other factors driving down cattle population, now comes the wildfires in the Texas Panhandle, which have destroyed more than a million acres of farmland and killed more than 6,000 cattle so far. The good news, according to Tomascik, is any impact of the fires on prices should be minimal. "Overall, it's pretty small, it's localized," he tells KTRH. "Of course, 6,000 head is a tremendous number, but it's not big enough to move the market in regards to the price of cattle and the price of beef."
Whether parched by drought or ravaged by wildfire, Texas ranchers are thirsty. "The number one ingredient for raising cattle and all livestock in Texas is rainfall," says Tomascik. "Recovery from this is going to take some time, and mother nature is going to help with that as much as anything."
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