U.S. Beef Production Likely Will Continue to Decline

Rabobank predicts that U.S. beef prices will reach record levels and production will post another 2-3% decline in 2015, following a 5% decline in 2014, reported Agrimoney.com.

U.S. cow slaughter was down 14% in 2014 due to aggressive herd rebuilding, which is expected to continue into 2015, Rabobank said, and reduced beef availability is expected to continue driving market prices up.

“The improving recovery in the U.S. economy helps support beef consumption,” according to French banking company Société Générale. “Lower fuel prices have also helped moderate the ‘wallet spend’ of U.S. consumers. Falling gasoline prices have helped offset the higher cost of beef, and other meats, which is supporting beef demand.”

The University of Illinois reported recently that domestic per capita beef supplies in 2015 are projected at an historic low of 52.2 pounds, down from 54.6 pounds in 2014, and both production and exports are expected to decline from 2.6 billion to 2.5 billion pounds.S