U.S. Cattle Herds Down, Beef Prices Up

If you feel like you’re paying more for a hamburger these days, it’s because you probably are.

The Agriculture Department reported on Friday that cattle herds across the country are down 2 percent from a year ago, making it the lowest level since 1952. That means demand is up, along with prices.

Whether or not it’s good news depends on who you ask. It’s great for ranchers selling their cattle, but not for the consumer. Agricultural economists say it’s expected to benefit Idaho’s agriculture economy.

Dozens of beef cows took in their last supper on Tuesday night, before they become someone else’s supper on Wednesday. The animals are a hot commodity right now.

“Consumers can expect beef in the store to stay relatively high for probably at least two years,” said Dwayne Skaar, who runs Skaar Feedlot.

That spike at the cash register stems from the lowest cattle supply in 60 years. A severe drought in major beef-producing states like Texas and Oklahoma in 2011, left ranchers thinning their herds. Add a 22-percent jump in foreign exports and you’ve got a recipe for the record books.

“Idaho actually increased the last two years,” said Paul Patterson, an agricultural economist with the University of Idaho. “It’s up 5 percent compared to a year ago.”

Patterson said that means, when you separate out milk, the Gem State’s second biggest component of agriculture receipts is thriving.

It’s not the case for feedlots like Skaar’s in Lewisville, which is now paying $200 more per head of cattle than last year, while trying to keep up with the cost of feed.

“The bright spot is, total numbers are way down,” said Skaar. “So there should be some margin in this cattle when we’re finished with them.”

Butchers at Broulim’s in Shelley said they’ve seen small increases in beef prices over the past year, especially in ground beef.

Twenty-three-year employee David Fried said it went up 30 cents a pound just three or four months ago, but that hasn’t kept it sitting on the shelf.

“Well, I guess everybody’s like me,” said Fried. “If you want ground beef, want a hamburger, you’re going to buy ground beef.”

Experts said consumers can expect beef prices to spike this summer when barbeques are in high demand.

The Idaho Cattle Association’s most recent statistics are from 2010 – before last year’s crisis. They show the total value of Idaho cattle at more than $2 billion.