The announcement that beef herds are now being maintained at 60 year lows? The reason is the droughts in the southwest and wild fires. I look for big increases in the the cost of beef if demand goes up. I've stocked my freezers nearly as full as possible. Sorry, I don't have a link at the moment.
I heard this as well, but when I heard about it, it was only speculation at the time .
I guess I better stock up a bit and do some jerky...
I knew about this last summer. The farmers had to thin out their herd because of the severe drought in Tx and Ok. Even straw was very hard to come by.
This may help you understand what going on in some areas.
http://www.weather.com/outdoors/agriculture/news/hay-shortage-drought_2011-11-28 (http://www.weather.com/outdoors/agriculture/news/hay-shortage-drought_2011-11-28)
It's really gonna start affecting beef prices this year. Pricing at the livestock auctions is getting really weird and outside of historical trends.
I was in the store to buy steak and saw the price had increased a whole dollar per pound over last year. So instead of 8.99 a lb it is now 9.99. That was a good size jump.
My brother in law raises cows as a side business. Right now young steer are more expensive that past years but nit unreasonably high. He is budgeting selling his meet for $3.75 per pound so it's unlikely beef costs will go up to some breaking point.
What about the price of a dang chicken? What happened to cause this ridiculous price we're paying?
As I understand it, some of the problem is the use of corn in the production of ethanol. This has caused a rise in corn prices and a resultant rise in the price of everything corn is used in or for.
Watch the commodities market and keep an eye on the price of beef...this might be a clue.
Billy
Quote from: CHEVY VOLT GOVT on February 11, 2012, 07:43:24 PM
Watch the commodities market and keep an eye on the price of beef...this might be a clue.
Billy
Beef is already going up quite a bit from the Southern drought, but add to that fuel costs and panic buying and the price is probably going to sky rocket.
Its already gone up a buck a pound here in Ca and we Ca raises most of its own beef.
This doesn't bode well for Hussein this Fall. :biggrin:
In my area the big thing is the drought. People are growing less grass on their land. That means they are spending more on feed and making less. So they are selling more of their herds and some marginal guys are getting out.
Quote from: Dan on February 13, 2012, 08:39:54 AM
In my area the big thing is the drought. People are growing less grass on their land. That means they are spending more on feed and making less. So they are selling more of their herds and some marginal guys are getting out.
Add to that the price of electricity to pump water for irrigation and that pretty much seals the deal.
Most cut their losses early and will try again when the drought ends.
I don't even have to mention fuel cost into the equation...
The big costs are the cattle, feed and processing costs. Usually vet costs are pretty minor if you are just buying steer to fatten up. And there could be a small rental fee if you are using someone else's land. But in this equation, the feed is by far the biggest cost and droughts mean more guys have to buy hay and they are having to work harder to achieve the weight gains in their animals that create a profit.
The math just works a heck of a lot better with a little more rain. ;)
The Food Safety Act passed in 2010 gets credit for a big % of this increase too.
Quote from: Stinkfoot on February 18, 2012, 06:39:55 PM
The Food Safety Act passed in 2010 gets credit for a big % of this increase too.
Welcome to the forum SF.
Yep, the libs have a way of causing cost increases across the board.
Foresight has never been one of their strong suits, like destroying our culture.
Quote from: Solar on February 18, 2012, 06:52:05 PM
Welcome to the forum SF.
Yep, the libs have a way of causing cost increases across the board.
Foresight has never been one of their strong suits, like destroying our culture.
Thanks for having me here - seems like a nice place. Glad hokie pointed it out to me!
re:Libs..No argument except that it wasn't just libs, but the entire Senate that passed this insidious cost-raiser.
Quote from: Stinkfoot on February 18, 2012, 07:01:13 PM
Thanks for having me here - seems like a nice place. Glad hokie pointed it out to me!
re:Libs..No argument except that it wasn't just libs, but the entire Senate that passed this insidious cost-raiser.
By libs, I include RINO, we need to clean House of these little socialists.
The weather this winter has been weird to say the least. Record high winter time temperatures has resulted in a lack of snow pack in many areas that depend on it. If rain amounts and locations are affected, drought conditions now being experienced in the southwest may expand. That will caused disruptions in grass and grain production. End result will be further downturns in herd sized and resultant cost of beef.
Quote from: Possumpoint on April 01, 2012, 05:59:21 PM
The weather this winter has been weird to say the least. Record high winter time temperatures has resulted in a lack of snow pack in many areas that depend on it. If rain amounts and locations are affected, drought conditions now being experienced in the southwest may expand. That will caused disruptions in grass and grain production. End result will be further downturns in herd sized and resultant cost of beef.
It already happened PP, the south has been in a drought for sometime now.
And you would be correct, beef and feed prices are at a premium at the moment and climbing.
It was a weird winter, we had virtually 3 months of spring in the winter, and now were experiencing winter in the spring.
We were in a drought in ca, but with the storms the last few weeks, were almost near normal with the snow pack.