Beef Supplies Expected to Tighten Further

The CEO of CattleFax says tighter beef supplies are coming.  

Randy Blach says he expects, “The low in beef production probably will not occur until 2025 or 2026.”  He estimates a 4 to 5 percent decline in beef production in 2024 and another 3 percent reduction in 2025. Blach indicates that will push beef prices higher.  And consumers will not have as much of the high-quality beef products available to them as what they’ve been used to over the last 3 or 4 years. “We’ll see a little bit of a demand erosion as the industry moves forward,” says Blach.

“There has been very little impact to demand, even as beef prices have risen. However, there’s been a little less beef featuring at retail,” he says.  “That would typically be the case where retail margins have narrowed significantly.”

According to Blach, as prices go up, beef will likely see increased competition from other proteins at the grocery store. 

EDITOR’S TAKE:

A couple of things stand out in this article, less beef and higher prices. Higher prices for farmers/ranchers is a good thing if you’re in the business of selling them trucks. However, for consumers who like beef – this is not the best news. They will either have to pay more for their burgers and steaks, consume less beef and/or switch to other available meats. For the moment, let’s concentrate on the good news. Beef producers will have more money to spend on trucks. So, be sure to let them know what you have in stock by putting your available inventory on AgTruckTrader.com. In the meantime, we at the Certified Ag Group will continue to do everything in our power to create awareness of your dealership and our program to farmers/ranchers. We will drive them to sign up for their AgPack ID on AgTT.com and to visit your dealership when purchasing or leasing that new or qualified used truck!