American grocery shoppers are still purchasing beef, despite record high prices this year. The demand for beef is stronger in 2014 than in 2013, even though fewer cattle spark higher prices.
On the demand side, the second quarter–April through June–was the best quarter for beef and pork demand in 10 years; better than expected, especially in view of historically high prices, said Glynn Tonsor, livestock marketing specialist with K-State Research and Extension.
The U.S. Department of Agriculture’s (USDA) latest Cattle Inventory Report estimated the total number of cattle and calves in the U.S. as of Jan. 1 at 87.7 million head, down 2 percent from 89.3 million a year ago. The January 2014 inventory estimates were the lowest since 1951.
Higher prices typically encourage ranchers to expand their herds and there were signs of this in 2012-2013, but the buildup appears to have started to stall this year. The price of cows is high enough that ranchers may opt to sell them rather than retain them to produce more calves.