So the issue with beef is the drought in the US in 2011/12 caused massive liquidations of the beef cattle herds across the entire US. The drought caused shortages and high process of feed crops. The lack of feed and high costs are why US herds were shrunk to its lowest national level in almost 60 years, yet the population and demand for beef has rise exponentially
It takes on average 2.5 years to grow a herd size. This is causing a shortage of beef for slaughter for two reasons.
1) shortage due to liquidation
2) shortage due to cow retention for breeding to grow herd size.
There are a few other factors as well. The US ad Canada are no the only 2 countries effected by massive drought.
USA and Canada are both large importers and exporters of beef, however due to a continuing drought, going on 7 years, in Australia there is more pressure on world beef markets. Add that to new markets opening up for South American beef to Europe, Asia and now Russia importing beef is not as economical as it once was.
Not to mention the new Country of Origin labeling introduced in the US, which has caused Tyson Foods, the largest beef processor in the US, to stop using or importing beef completely.
There is actually a world beef 'shortage' so to speak. Basic economics dictates price through supply and demand,
Now on to pork.....
PEV disease is a problem causing piglets to die. It is expected that the US hog industry is expected to drop production by 12.5% from 2013 levels, translates into roughly 18.5miliion fewer slaughtered hogs this year than last.
add the high beef prices the hog industry can artificially inflate prices to grow margins making themselves more $$$.
Another aspect to the high pork process, especially in the US, is not being talked about, at least not here in Canada. Last year a Chinese company bought the worlds largest pork processor based I the US. They are now increasing, by leaps ad bounds, the amount they are exporting back to China. The ew owners also penned a deal a few months ago to ship pork to Russia.
Russia and the US previously had o trade agreement for pork, and they still don't. But because the Chinese do have a trade deal and they own the company inn the US the are able to circumvent and export to Russia.
Its a world market and hard to handle. Wreaking havoc in my industry and causing nothing but problems.
Watch for good deals, buy local when possible. There are lots of farmers raising amazig beef that is well worth the $. especiilay when compared to the big processors beef.
