The U.S. could lose roughly 1.5 billion pounds of beef production this year. Analysts say it could push prices higher for producers.
Rabobank says this will be the first significant year-over-year decline in beef production since the previous cycle of liquidation due to drought and high grain prices. Friday’s Cattle on Feed report shows placements were down 8 percent on the year. Even with the decline, Rabobank says the U.S. will still be the top global producer.
Growth in places like Australia, Brazil, and Mexico will not be enough to offset the decline here in the U.S., but that means U.S. exports could decline and imports could increase to meet demand.
