An ag economist says rising prices for cull cows could hinder expansion of the U.S. cattle herd.
Josh Maples with Mississippi State University Extension says two-dollar per pound cull cow prices are not crazy. “You can get really, really strong prices for those cows,” he says. “Especially if we bring in less trim from places like Brazil.”
He says the U.S. beef industry needs more lean trim to meet consumer demand for ground beef, but it is facing tight domestic supplies and a shortage of imports from the ongoing ban on live cattle from Mexico.
Brazil has helped fill the gap in the U.S. supply chain, but last month the U.S. imposed a 50 percent tariff on beef imports from Brazil, bringing the effective rate for Brazil to 76 percent.
Maples suggests there will likely be a lot less trim imported from Brazil. “I’m not saying that’s a good or bad thing,” he says. “I’m just saying that’s certainly going to have an impact on our cull cow prices here as we need to find other ways to get that trim to blend with the fatty trimmings coming off our fed cattle.”
He says producers will have difficult decisions to make. “What does the producer do when they have $2.00 plus cull cow prices. They want to keep her around because they expect good cash calf prices next year. But, man, that looks like a pretty enticing culling opportunity.”
Maples claims whether producers decide to cull cows or hold them back will go a long way in determining whether the cattle herd begins to stabilize and eventually expand.
EDITOR’S TAKE:
I recently visited with several acquaintances who shared privately that they are actively seeking alternatives to beef cuts due to higher prices at the grocery store. Now, higher prices for cull cows are not helping the situation. Beef producers will likely find those prices too good to pass up, thus, exacerbating the issue of expanding the overall beef herd to meet demand. This is a dilemma for all involved. Beef producers are not seeing the incentives to expand and consumers are feeling the pinch on the demand side. Eventually this will find an equilibrium.
In the meantime, beef producers are a prime target for truck sales in 2025 and into 2026. You might want to make a special effort to identify and contact them – let them know who you are and what you have to offer them. AgTruckTrader.com® is one option to reach them. You might also want to consider a personal visit or, at the very least, some correspondence personally addressed to them. Be sure to mention that you are a CAD member and don’t hesitate to tell them what that means to them.
