US beef producers are adding more meat to the supply chain
Beef supply in the US is getting larger due to a bigger number of slaughtered cattle. The drought that affected the southern Central Plains is forcing the farmers to sacrifice the animals adding a 10% to the predictions made by experts.
While industry predictions have called for slowed but continued beef cow herd expansion through 2019, the surge in beef cows at harvest is putting additional beef into the supply chain. Nevertheless, Derrell Peel, Oklahoma State University Extension economist, says 2018 beef cow herd numbers are very similar to 2009 levels, but for different reasons, as Drovers magazine reports.
At this point, considering the data collected on mid-April, total beef production in the US is on pace to increase by 7.5% during the second quarter, with a total 2018 increase of nearly 5%. That can only mean that prices are under pressure but, for now, the grilling season is keeping the market steady.
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