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Beef Prices Starting To Soar

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Mike

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CNN Money
By Parija Kavilanz, senior writerMarch 31, 2011: 2:07 PM ET


NEW YORK (CNNMoney) -- If you're already shocked by how much your favorite cut of beef costs at the supermarket, brace yourself because prices will keep going up.

Surging commodity prices already have consumers paying more for groceries such as eggs, milk, cereal and meat. The price of beef in particular has shot through the roof.

In February, the average retail price per pound for beef was $3.87, up 12.4% versus a year ago, according to market research firm FreshLook Data.

The average retail price for a pound of chicken was up 3.9% in February versus a year ago, turkey was up 5.4%, veal up 6.7% and pork up 10%.

Among all meat production, beef producers typically incur some of the highest production costs. For example, costs for cattle farming are much higher than for poultry farming.

Cattle farmers pay more for each animal, land for grazing, fertilizers, feed and processing systems versus poultry farmers.

Also the time it takes to prepare cattle for sale is much longer compared to other meats. It's just 46 days for chicken but can take a few years for beef.

Now, on top of the already high costs of doing business, inflation is further driving up expenses.

U.S. beef producers blame these higher production costs -- up 14% in the past year -- for the jump in consumer prices.

"There's inflation in everything we buy to run our business," said Bill Donald, president of the National Cattlemen's Beef Association, an advocacy group for beef producers.

Fuel used in machinery and trucks, grains to feed cattle and fertilizer used on the farms are all more expensive. Donald expects those trends to continue through the year.

"Last year we paid $3 a gallon for fuel. Now we're paying $4," he said.

Beef producers are also dealing with a shrinking cattle population.

As beef producers struggle with escalating business costs and growing debt, Donald said more of them are selling their heifers for meat production, instead of breeding them to grow the herd.

What's more, with prices for commodities such as soy and corn surging, Donald said some cattle farmers are also switching over part of their cattle grazing land to growing these high profit margin grains.

The nation's cattle inventory has dropped to 92 million head, the lowest level in 53 years, said Trevor Amen, market analyst with The Beef Checkoff, a government program created to generate funding within the industry to promote beef consumption.

"There's no economic incentive for producers to rebuild their herd." said Amen.

Tricky situation. The beef industry is acutely aware of the dangers of rising retail prices. Budget-conscious consumers could buy less beef and decide to eat chicken or some other protein instead.

Beef is the No.1 selling protein in the United States. Last year, consumer spending on beef totaled $74.3 billion. Per capita consumption of beef in 2010 was 59.6 pounds while per capita spending for beef was $240, according to industry research firm CattleFax.

"We want people to keep beef on their plate and think of it as a delicious, affordable protein," said Donald, adding that the industry is working on initiatives with retailers to keep beef affordable to frugal consumers.

For instance, Amen said producers are taking higher-priced large cuts and repackaging them into leaner and smaller portions.

Those smaller portions could include selling single-serve products. The single serve portions are cheaper than the larger cuts but they'll have less meat.

For those families that generally buy meat in bulk, beef producers have introduced a "slice and save" program.

Amen said consumers typically pay more for bulk meat that is cleaned up and prepackaged and cut up for them by stores.

"So what we suggested to retailers is to allow shoppers to buy the bulk meat and cut it themselves at home," he said.

The beef industry is also exploring other promotional offers such as coupons, said Donald.

"We're aware of the sticker shock for consumers," he said.

"We don't want consumers to start thinking of beef as a luxury item," he said.
Click to expand...
 
Hi again, old "BS" friends. I'm back after 6 years while I cared for my brain injured husband at home. Last time I was active here, we were in the throes of the bse debaucle in Canada. Some of us in the cattle business are are still here, many are gone, broke and disillusioned. It will take years of good prices for each of us to recover both financially and emotionally.

But things may be looking up! Today cattle are trading at some of the highest prices ever in both our countries. Guess what, ours are about the same price as in the US, even with our dollar worth about 4 cents more than yours! You might be saying "How did all this happen?". We have our own export markets now, ordinary people are realizing that more people died of "flu" than ever died of bse, the disease, if not eradicated , is controlled and townspeople and importers have realized this is the case. I feel so sorry for families that have lost someone from any of the horrible diseases that abound, but we have finally, in Canada quit paying emotionally and financially for those lost to the effects of bse.

That's how I see it anyway!
 
borderancher2 said:
Hi again, old "BS" friends. I'm back after 6 years while I cared for my brain injured husband at home. Last time I was active here, we were in the throes of the bse debaucle in Canada. Some of us in the cattle business are are still here, many are gone, broke and disillusioned. It will take years of good prices for each of us to recover both financially and emotionally.

But things may be looking up! Today cattle are trading at some of the highest prices ever in both our countries. Guess what, ours are about the same price as in the US, even with our dollar worth about 4 cents more than yours! You might be saying "How did all this happen?". We have our own export markets now, ordinary people are realizing that more people died of "flu" than ever died of bse, the disease, if not eradicated , is controlled and townspeople and importers have realized this is the case. I feel so sorry for families that have lost someone from any of the horrible diseases that abound, but we have finally, in Canada quit paying emotionally and financially for those lost to the effects of bse.

That's how I see it anyway!
Click to expand...

I hope that the bse problem in Canada (and Europe where it was worse) has truly faded. I know that it has taken its toll on farm family's income and that is never a good thing.

Good luck and sorry to hear about your husband. This whole bse thing has really taken its toll.

Tex
 
Borderancher2,

Glad to hear your markets have improved.

Good thing most consumers could see through R-CALF's BSE fear mongering which was used as a catalyst to try to stop imports.

Gee, don't look now but we are having record cattle prices and we are still importing Canadian cattle and beef. So much for the R-CALF market analysts.


~SH~
 
I've noticed how SH mentions that there many factors that affect cattle prices when it suits him, but then .......
 
Sandhusker: "I've noticed how SH mentions that there many factors that affect cattle prices when it suits him, but then ......."
Click to expand...

Still creating illusions huh?

Obvious to anyone but the most ardent market manipulation conspiracy theorist is that we are having record cattle prices while we are still importing, while packers are still concentrated into a few major companies, and while packers still have captive supplies.

Also obvious to anyone but the most ardent R-CALF supporter is the fact that R-CALF can't win a court case. 0 & 9, says it all.

That can only mean that you and those who think like you are clueless when it comes to the factors that affect cattle markets. If you actually knew the factors that affected cattle prices, you'd talk about beef demand, exports, carcass weights, competitive meats, corn prices, etc.

But you don't know......


~SH~
 
This sermon coming from an individual who had to be taught short and long.

Controlled markets fluctuate. The world supply of oil is undeniably under OPEC's thumb - it fluctuates. Figure it out.
 
Sandhusker: "Controlled markets fluctuate".
Click to expand...

Hahaha!

Ahhhh....ok!

Controlled when it goes up or controlled when it goes down or something in between?

Periods of packer greed followed by periods of packer generosity?

Hahaha!

The lengths you will go to justify WHAT YOU WANT TO BELIEVE are incredible.

Controlled markets fluctuate. Hahaha! That's too good.



~SH~
 
I was just talking to our local sales barn about selling our calves soon and he told me that prices are "really high" and proceeded to quote figures that are still not up to pre-BSE levels.

He also told me that ". . . you cow/calf guys haven't had it all that bad for the past few years . . ."

After selling all my calves there for quite a few years, I think I will be going elsewhere with my calves this spring.

So, while beef prices might be starting to soar, feeder prices have a bit of a climb to get to where they should be.

I just looked up what I paid for diesel in 2003 compared to last week when I filled the same tank - around $900 to $1000 in '03 and last Friday - $2362.00!!

So, what is it that has soared the most?
 
beef prices may be soaring, but i hate to bust your mad cow free bubble. BSE has not gone away. it's just been burried. SSS, that's how i see it $$$


Bovine spongiform encephalopathy (BSE) cases confirmed in Canada in 2011

BSE is a reportable disease under the Health of Animals Regulations. This means that all suspected cases must be reported to the CFIA.

The following table lists individual animals confirmed to be infected with BSE in Canada in 2011.

Current as of: 2011-02-28

Date confirmed Location Animal type infected Age of animal February 18 Alberta Dairy cow 77 months

http://inspection.gc.ca/english/anima/disemala/rep/2011bseesbe.shtml



Saturday, March 5, 2011

MAD COW ATYPICAL CJD PRION TSE CASES WITH CLASSIFICATIONS PENDING ON THE RISE IN NORTH AMERICA

http://transmissiblespongiformencephalopathy.blogspot.com/2011/03/mad-cow-atypical-cjd-prion-tse-cases.html



Saturday, March 12, 2011

Variant Creutzfeldt-Jakob Disease in a Canadian resident Infectious Diseases News Brief - March 11, 2011

http://transmissiblespongiformencephalopathy.blogspot.com/2011/03/variant-creutzfeldt-jakob-disease-in.html



Wednesday, August 11, 2010

REPORT ON THE INVESTIGATION OF THE SIXTEENTH CASE OF BOVINE SPONGIFORM ENCEPHALOPATHY (BSE) IN CANADA

http://bse-atypical.blogspot.com/2010/08/report-on-investigation-of-sixteenth.html



Thursday, August 19, 2010

REPORT ON THE INVESTIGATION OF THE SEVENTEENTH CASE OF BOVINE SPONGIFORM ENCEPHALOPATHY (BSE) IN CANADA

http://bseusa.blogspot.com/2010/08/report-on-investigation-of-seventeenth.html



Thursday, February 10, 2011

TRANSMISSIBLE SPONGIFORM ENCEPHALOPATHY REPORT UPDATE CANADA FEBRUARY 2011 and how to hide mad cow disease in Canada Current as of: 2011-01-31

http://madcowtesting.blogspot.com/2011/02/transmissible-spongiform-encephalopathy.html




A Cost-Benefit Analysis of Voluntary BSE Testing of Cattle


Al Mussell, Kevin Grier, Claudia Schmidt, Wayne Martin, Darryl Robinson, John Cranfield, Kurt Klein, Ted Schroeder, and Ron Doering

January, 2011


snip...


The drawbacks of allowing testing relate to the potential to negatively impact consumer attitudes toward untested beef, lack of support from regulators, and the prospect that testing, especially under a future ante mortem test, might identify positive cases and adversely impact Canada's BSE risk status. ....


SNIP...


SEE FULL TEXT ;


http://prioninstitute.ca/forms/BSE%20Testing%20Final-revised%20%20Plus%20App%20C%20AM%20Mar%2029.pdf




Saturday, January 29, 2011

Atypical L-Type Bovine Spongiform Encephalopathy (L-BSE) Transmission to Cynomolgus Macaques, a Non-Human Primate

Jpn. J. Infect. Dis., 64 (1), 81-84, 2011

http://transmissiblespongiformencephalopathy.blogspot.com/2011/01/atypical-l-type-bovine-spongiform.html




Saturday, March 5, 2011

MAD COW ATYPICAL CJD PRION TSE CASES WITH CLASSIFICATIONS PENDING ON THE RISE IN NORTH AMERICA

http://transmissiblespongiformencephalopathy.blogspot.com/2011/03/mad-cow-atypical-cjd-prion-tse-cases.html



another by-product of ignorance and the industries $$$



Tuesday, March 29, 2011

TRANSMISSIBLE SPONGIFORM ENCEPHALOPATHY EXPOSURE SPREADING VIA HOSPITALS AND SURGICAL PROCEDURES AROUND THE GLOBE

http://transmissiblespongiformencephalopathy.blogspot.com/2011/03/transmissible-spongiform-encephalopathy.html




Friday, April 15, 2011

PRION TRANSMISSIBLE SPONGIFORM ENCEPHALOPATHY PROJECTS, RESEARCH FUNDING, BSE VOLUNTARY TESTING UPDATE IN NORTH AMERICA 2011


http://prionunitusaupdate2008.blogspot.com/2011/04/prion-transmissible-spongiform.html




TSS
 
Sandhusker: "Do you want to go on record as stating that OPEC does not control the global oil market?"
Click to expand...

We are not talking about oil, we are talking about cattle. Who controls the cattle market?

Answer the question.


~SH~
 
My friends and myself here in Alberta say you are so right! Another "lady rancher" who I talk to almost daily has said the very same thing. I had been telling her that we are almost to the point that food producers will get the credit they deserve, everybody has to eat. Populations are growing, food producing areas are shrinking. Look at all the prime food (grain) growing land put under cement yearly around our cities for their expansions.
Her reply?
When our governments get done with it and when we think we will be able to "cash in", someone else will still "be eating our lunch"!

Sadly, I have to agree with her.
 
Oh, oh! I am rather new to this posting thing but have lurked and read for several years. This was in reply to something posted by someone back on page 1. I guess I will have to learn to keep current with my postings!
 
This is the one I meant to reply to...
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Mike
Rancher



Joined: 10 Feb 2005
Posts: 14829
Location: Montgomery, Al
Posted: Fri Apr 01, 2011 6:33 am Post subject: Beef Prices Starting To Soar

--------------------------------------------------------------------------------

Quote:

CNN Money
By Parija Kavilanz, senior writerMarch 31, 2011: 2:07 PM ET


NEW YORK (CNNMoney) -- If you're already shocked by how much your favorite cut of beef costs at the supermarket, brace yourself because prices will keep going up.

Surging commodity prices already have consumers paying more for groceries such as eggs, milk, cereal and meat. The price of beef in particular has shot through the roof.

In February, the average retail price per pound for beef was $3.87, up 12.4% versus a year ago, according to market research firm FreshLook Data.

The average retail price for a pound of chicken was up 3.9% in February versus a year ago, turkey was up 5.4%, veal up 6.7% and pork up 10%.

Among all meat production, beef producers typically incur some of the highest production costs. For example, costs for cattle farming are much higher than for poultry farming.

Cattle farmers pay more for each animal, land for grazing, fertilizers, feed and processing systems versus poultry farmers.

Also the time it takes to prepare cattle for sale is much longer compared to other meats. It's just 46 days for chicken but can take a few years for beef.

Now, on top of the already high costs of doing business, inflation is further driving up expenses.

U.S. beef producers blame these higher production costs -- up 14% in the past year -- for the jump in consumer prices.

"There's inflation in everything we buy to run our business," said Bill Donald, president of the National Cattlemen's Beef Association, an advocacy group for beef producers.

Fuel used in machinery and trucks, grains to feed cattle and fertilizer used on the farms are all more expensive. Donald expects those trends to continue through the year.

"Last year we paid $3 a gallon for fuel. Now we're paying $4," he said.

Beef producers are also dealing with a shrinking cattle population.

As beef producers struggle with escalating business costs and growing debt, Donald said more of them are selling their heifers for meat production, instead of breeding them to grow the herd.

What's more, with prices for commodities such as soy and corn surging, Donald said some cattle farmers are also switching over part of their cattle grazing land to growing these high profit margin grains.

The nation's cattle inventory has dropped to 92 million head, the lowest level in 53 years, said Trevor Amen, market analyst with The Beef Checkoff, a government program created to generate funding within the industry to promote beef consumption.

"There's no economic incentive for producers to rebuild their herd." said Amen.

Tricky situation. The beef industry is acutely aware of the dangers of rising retail prices. Budget-conscious consumers could buy less beef and decide to eat chicken or some other protein instead.

Beef is the No.1 selling protein in the United States. Last year, consumer spending on beef totaled $74.3 billion. Per capita consumption of beef in 2010 was 59.6 pounds while per capita spending for beef was $240, according to industry research firm CattleFax.

"We want people to keep beef on their plate and think of it as a delicious, affordable protein," said Donald, adding that the industry is working on initiatives with retailers to keep beef affordable to frugal consumers.

For instance, Amen said producers are taking higher-priced large cuts and repackaging them into leaner and smaller portions.

Those smaller portions could include selling single-serve products. The single serve portions are cheaper than the larger cuts but they'll have less meat.

For those families that generally buy meat in bulk, beef producers have introduced a "slice and save" program.

Amen said consumers typically pay more for bulk meat that is cleaned up and prepackaged and cut up for them by stores.

"So what we suggested to retailers is to allow shoppers to buy the bulk meat and cut it themselves at home," he said.

The beef industry is also exploring other promotional offers such as coupons, said Donald.

"We're aware of the sticker shock for consumers," he said.

"We don't want consumers to start thinking of beef as a luxury item," he said.






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burnt
Rancher



Joined: 28 Feb 2008
Posts: 3685

Posted: Fri Apr 01, 2011 9:19 am Post subject:

--------------------------------------------------------------------------------

Not hard to figure.

It's finally coming back closer to a price that somewhat resembles the real cost of production.



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borderancher2
Member



Joined: 30 Mar 2011
Posts: 9
Location: Alberta
Posted: Thu Apr 07, 2011 7:36 am Post subject:

--------------------------------------------------------------------------------

Hi again, old "BS" friends. I'm back after 6 years while I cared for my brain injured husband at home. Last time I was active here, we were in the throes of the bse debaucle in Canada. Some of us in the cattle business are are still here, many are gone, broke and disillusioned. It will take years of good prices for each of us to recover both financially and emotionally.

But things may be looking up! Today cattle are trading at some of the highest prices ever in both our countries. Guess what, ours are about the same price as in the US, even with our dollar worth about 4 cents more than yours! You might be saying "How did all this happen?". We have our own export markets now, ordinary people are realizing that more people died of "flu" than ever died of bse, the disease, if not eradicated , is controlled and townspeople and importers have realized this is the case. I feel so sorry for families that have lost someone from any of the horrible diseases that abound, but we have finally, in Canada quit paying emotionally and financially for those lost to the effects of bse.

That's how I see it anyway!




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Tex
Rancher



Joined: 13 Oct 2007
Posts: 1674
Location: Texas
Posted: Thu Apr 07, 2011 9:10 am Post subject:

--------------------------------------------------------------------------------

borderancher2 wrote:
Hi again, old "BS" friends. I'm back after 6 years while I cared for my brain injured husband at home. Last time I was active here, we were in the throes of the bse debaucle in Canada. Some of us in the cattle business are are still here, many are gone, broke and disillusioned. It will take years of good prices for each of us to recover both financially and emotionally.

But things may be looking up! Today cattle are trading at some of the highest prices ever in both our countries. Guess what, ours are about the same price as in the US, even with our dollar worth about 4 cents more than yours! You might be saying "How did all this happen?". We have our own export markets now, ordinary people are realizing that more people died of "flu" than ever died of bse, the disease, if not eradicated , is controlled and townspeople and importers have realized this is the case. I feel so sorry for families that have lost someone from any of the horrible diseases that abound, but we have finally, in Canada quit paying emotionally and financially for those lost to the effects of bse.

That's how I see it anyway!


I hope that the bse problem in Canada (and Europe where it was worse) has truly faded. I know that it has taken its toll on farm family's income and that is never a good thing.

Good luck and sorry to hear about your husband. This whole bse thing has really taken its toll.

Tex




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~SH~
Rancher



Joined: 14 Feb 2005
Posts: 5379
Location: South Western SD
Posted: Fri Apr 08, 2011 8:55 pm Post subject:

--------------------------------------------------------------------------------

Borderancher2,

Glad to hear your markets have improved.

Good thing most consumers could see through R-CALF's BSE fear mongering which was used as a catalyst to try to stop imports.

Gee, don't look now but we are having record cattle prices and we are still importing Canadian cattle and beef. So much for the R-CALF market analysts.


~SH~



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The phony who calls himself Econ 101 actually said, "prices can't go up unless the supplies come down" and "They (packers) pass those lower costs to consumers so they can sell more than their competitors."

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Sandhusker
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Joined: 10 Feb 2005
Posts: 17851
Location: Nebraska
Posted: Sat Apr 09, 2011 5:08 pm Post subject:

--------------------------------------------------------------------------------

I've noticed how SH mentions that there many factors that affect cattle prices when it suits him, but then .......



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~SH~
Rancher



Joined: 14 Feb 2005
Posts: 5379
Location: South Western SD
Posted: Sun Apr 10, 2011 7:26 am Post subject:

--------------------------------------------------------------------------------

Quote:
Sandhusker: "I've noticed how SH mentions that there many factors that affect cattle prices when it suits him, but then ......."


Still creating illusions huh?

Obvious to anyone but the most ardent market manipulation conspiracy theorist is that we are having record cattle prices while we are still importing, while packers are still concentrated into a few major companies, and while packers still have captive supplies.

Also obvious to anyone but the most ardent R-CALF supporter is the fact that R-CALF can't win a court case. 0 & 9, says it all.

That can only mean that you and those who think like you are clueless when it comes to the factors that affect cattle markets. If you actually knew the factors that affected cattle prices, you'd talk about beef demand, exports, carcass weights, competitive meats, corn prices, etc.

But you don't know......


~SH~



_________________
The phony who calls himself Econ 101 actually said, "prices can't go up unless the supplies come down" and "They (packers) pass those lower costs to consumers so they can sell more than their competitors."

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Sandhusker
Rancher



Joined: 10 Feb 2005
Posts: 17851
Location: Nebraska
Posted: Sun Apr 10, 2011 12:17 pm Post subject:

--------------------------------------------------------------------------------

This sermon coming from an individual who had to be taught short and long.

Controlled markets fluctuate. The world supply of oil is undeniably under OPEC's thumb - it fluctuates. Figure it out.



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Everything I post is fully substantiated by my own opinion.

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~SH~
Rancher



Joined: 14 Feb 2005
Posts: 5379
Location: South Western SD
Posted: Sun Apr 17, 2011 2:50 pm Post subject:

--------------------------------------------------------------------------------

Quote:
Sandhusker: "Controlled markets fluctuate".


Hahaha!

Ahhhh....ok!

Controlled when it goes up or controlled when it goes down or something in between?

Periods of packer greed followed by periods of packer generosity?

Hahaha!

The lengths you will go to justify WHAT YOU WANT TO BELIEVE are incredible.

Controlled markets fluctuate. Hahaha! That's too good.



~SH~



_________________
The phony who calls himself Econ 101 actually said, "prices can't go up unless the supplies come down" and "They (packers) pass those lower costs to consumers so they can sell more than their competitors."

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Sandhusker
Rancher



Joined: 10 Feb 2005
Posts: 17851
Location: Nebraska
Posted: Tue Apr 19, 2011 7:12 am Post subject:

--------------------------------------------------------------------------------

Do you want to go on record as stating that OPEC does not control the global oil market?



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Big Muddy rancher
Rancher



Joined: 10 Feb 2005
Posts: 14180
Location: Big Muddy valley
Posted: Tue Apr 19, 2011 8:03 am Post subject:

--------------------------------------------------------------------------------

Sandhusker wrote:
Do you want to go on record as stating that OPEC does not control the global oil market?


Your comparing perishable and Non perishable commodities.

OPEC doesn't have to pump oil if demand drops, Cattle are still going to slaughter.



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burnt
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Joined: 28 Feb 2008
Posts: 3685

Posted: Tue Apr 19, 2011 8:55 am Post subject:

--------------------------------------------------------------------------------

I was just talking to our local sales barn about selling our calves soon and he told me that prices are "really high" and proceeded to quote figures that are still not up to pre-BSE levels.

He also told me that ". . . you cow/calf guys haven't had it all that bad for the past few years . . ."

After selling all my calves there for quite a few years, I think I will be going elsewhere with my calves this spring.

So, while beef prices might be starting to soar, feeder prices have a bit of a climb to get to where they should be.

I just looked up what I paid for diesel in 2003 compared to last week when I filled the same tank - around $900 to $1000 in '03 and last Friday - $2362.00!!

So, what is it that has soared the most?
 
Burnt, the first part of your post about "cow calf people not having it so bad" reminds me of another rancher friend who, sadly for him and all that know him has had to undergo cancer surgery and now chemotherapy. One specialist asked him what he did for a living. He replied, "I am a rancher", Dr said "oh, you don't do much then". By the time patient and his wife left the office the Dr had been "set straight" on what ranchers do in their day to day lives and that Dr had a whole new understanding of the ranching business.
Patients wife did tell me that she was glad this was a post op visit, and he hubby might still have his cancerous lung if it had been a pre-op exam!

Education of the public is so important, but they don't seem to want to be educated as long as food tastes good and there is lots of it!
That,s how it seems to me anyway!
 
Reply to flounder...

Here in Canada we know that BSE is still around. The only difference between us and other countries is that our gov, our media uses the "Hey, Look what we got" approach in reporting these cases. Other countries are still hiding their cases or not even looking for/finding any in the first place. Just my opinion...
 
boarderancher2,,the phrase"education of the public is so important"
just hit my funny bone. :lol:

i think ranchers/farmers have been trying to 'educate the public' for years.
i appreciate your efforts and enjoy your steaks. 8)
 

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