The price of beef in the United States has reached a record high as the Southwest recovers from the worst drought in the region in 1,200 years.
The drought has caused feed prices to skyrocket, leading to a cascading effect that has caused the smallest cattle herds in 61 years, according to the Financial Times. The result is a new record-high price of beef, now at $8 per pound, beating the previous $7.90 per pound record achieved during the COVID-19 pandemic.
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“This drought is an environmental event having a significant impact on the national herd,” Amelia Kent, a local rancher in Louisiana, told the outlet. “You’re seeing cattle all being sold off heavily ... and my immediate concern is what does our region and the country’s cattle industry look like six months from now? And 12 months from now, what do our markets look like?”
The pandemic saw a rapid price fluctuation. Beef went from roughly $6 per pound to the $7.90 record, but it quickly went back down to about $6.30. The drought, starting in 2021, quickly shot prices back up, and they have continued to rise.
Other factors, such as the war in Ukraine's effect on global grain prices, have contributed to the price spike.
The effects of the drought have the potential to change the beef industry completely, changing the nationwide distribution of cattle. Adam Speck, senior analyst at Gro Intelligence, predicted that cattle will be redistributed to Northern farms, which have been largely spared from drought, as the South will continue to struggle, he told the Financial Times.
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Worse yet, cattle herds are far harder to regrow than other animals, as mothers may only give birth to one cow per year.
“From the day you and I decided the world needed more chicken to the day there was more chicken on people’s plates, that would be six months,” Bill Lapp, president of Advanced Economic Solutions, told the outlet. “For beef, it’s over two years. So when the industry has to adjust, it takes much longer.”