Ramping up beef production is not that easy, high prices expected to continue

SALT LAKE CITY — Beef prices are spiking across the United States, rising 12% in the last year. The U.S. Department of Agriculture says it’s because of shrinking herds, drought conditions and the rise of imported meat. 

Local ranchers say it’s not as simple as ramping up production. 

“There are a lot of requirements involved and it takes about two years for a cow to be born and raised to make it to the market,” said Jacob Schmidt with the Utah Cattlemen’s Association and Utah Beef Council. “There’s a high production time and right now, supplies are tight.” 

It takes a lot of feed to raise cows and the ongoing drought in the state is making it hard to grow. Utah ranchers are trying to work around the issue, but it’s not helping the local beef supply. 

“Most of our ranchers are what we call cow-calves, so they have a herd they maintain, and then raise calves and sell those,” Schmidt said. “Those will get shipped off to other areas where there’s more feed available so they can continue to grow.” 

Utah does not have the grass and feed to keep more of those cattle here in the state. 

Who benefits from the high beef prices varies depending on what point in the cattle cycle it is. The cycle is about 10 years. 

“There are multiple players in the production chain,” Schmidt said. “You’ll have calf-cow producers, backgrounders, feed yard, and the processing plant.”

Every single part of that chain will make a profit. But if prices are high and demand is low, small cow-calf producers will make more. Schmidt says this is also just the part of the cycle where prices are higher. 

Screwworm is also a big concern in the cattle industry right now. 

The U.S. closed the southern border and is refusing to accept cattle from South America at this time because of the deadly parasitic fly. But the U.S. doesn’t typically import a lot of cattle from the area. 

Still, the U.S. continues to work with what it has. 

“Beef farmers and ranchers are out there doing the best they can using the resources that we have to raise high-quality beef,” Schmidt said. “Rest assured, you’re going to get a great beef product.”