Is the rebuilding of the U.S. cattle herd finally gaining traction?

The beef industry has been waiting years for the herd to rebuild, and researchers at CattleFax say it is happening, but note it is taking a lot longer than originally thought.

Despite the higher prices, they say consumers are still buying up all they can.

“It does look like when we look back, January of 2025 will be the low in the beef cow herd. So, as I look at the numbers out here, I think it’s important that people recognize that our per capita beef supplies are pretty flat. They haven’t changed much. This price increase that we’re experiencing in the industry is demand-driven. Beef demand is at a 37-year high, and I think when people think about demand, obviously, quality has been the key to that. We’ve seen the quality of the animals being produced has increased substantially,” said CattleFax CEO Randy Blach.

Researchers at RaboBank have also been tracking the numbers. They say that hot consumer demand is likely here to stay.

“And I’m here to tell you, as we look at early 2025, all indications are that demand is going to continue to set new near-term record highs, looking like the best demand we’ve seen since 1986 at the moment. And a lot of that’s due to the fact that even though the consumer pricing is going up, and even though the consumer’s increasingly stressed, buying beef at retail is still a relatively cheap lifestyle upgrade that the consumer can make,” said Lance Zimmerman.

The latest Cattle On Feed report shows inventories are down two percent compared to last year at this time. Only two states saw an increase: Kansas herds grew by three percent, and Oklahoma herds grew by two percent.

Related Stories
Producers across the country balanced winter weather disruptions, shifting export demand, and tightening margins as year-end decisions come into focus.
Reviewing risk management now can help dairy and livestock producers enter 2026 with clearer margins and fewer surprises.
The National Cattlemen’s Beef Association (NCBA) and Public Lands Council (PLC) are praising the passage of a bill to delist gray wolves as an endangered species by the U.S. House last week.
Tight feeder supplies and lower placements indicate continued support for the cattle market, with regional impacts heightened in Texas by reduced feeder imports.
Cattle markets are watching the Cattle-on-Feed Report for signs of tighter supplies, while USMEF warns limited China access is cutting producer profits.
Lower milk prices may pressure margins, but strong cattle values could soften near-term financial impacts.

LATEST STORIES BY THIS AUTHOR:

Texas Farm Bureau President Russell Boening joined us with the latest update on storm conditions and impacts across the state.
Mike Knotts with the Tennessee Electric Cooperative Association joined us with the latest on storm impacts, power restoration, and safety considerations following the ice storm.
Brooks York with AgriSompo joined us with his outlook on crop insurance and risk management following the recent winter storm that tore through most of the United States, including the Midwest.
Placements and marketings beat expectations, but declining on-feed totals and feeder constraints keep the supply story supportive for cattle prices into 2026. Dr. Derrell Peel, with Oklahoma State University, joined us to break down cattle-on-feed numbers and provide his broader market outlook.
USDA Rural Development Director for Kentucky, Travis Burton, joined us to discuss the Princeton facility (formerly Porter Road Meats), now backed by the USDA, and its role in expanding domestic meat processing capacity.
Farm CPA Paul Neiffer joined us to break down the recent Fifth Circuit Court decision overturning a prior Tax Court decision on self-employment tax for limited partners, the ruling’s impact on farmers, and potential next steps in Congress.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.