Actually there could be a pretty deep discussion on the topic. In truth though it is part political policy over the last decade or so, part generational in that way fewer young people are willing to or even can get into ranching or meat production with land prices as they are, and then it’s inflation. The cost to produce feed stuff is way higher then ever before.
All of this has left the USA with the lowest beef numbers since 1951. Meanwhile the population has grown and demand is higher than its ever been. So we are very simply feeling the effects of supply and demand. Cost to produce is way up, numbers are down and demand very high. The price is forecasted to higher in the coming years on beef, pork and poultry.
All the time I hear people complain about these “magic middlemen “ or profiteers taking advantage, but it’s just not so. I live in a valley that is covered in farms and ranches, we have meat available everywhere from local producers. We also have meat processors. Let me give you the cost breakdowns buying here from any ranch down the road from me.
Rail price for beef is right at $4.00 per pound.
Processing is , $125.00 kill fee, and $1.60 pound for cut/wrap. So right there we are over $5.60 per pound, but wait there is more to the story.
Meat hangs for around 14 days. In that time it will loose around 4-5% of the rail weight that you are paying for. Then when the meat is ready to cut and wrap, the finished product looses another 40% of rail weight (bone and waste)
So we only take home about 55% of the original rail weight that we payed $5.60 a pound for. So $5.60 + 45% = $8.12 per pound. That burger and steaks, pretty expensive hamburger which is what you get the most of. Cheap steak but you had to buy a whole beef to get those.
Sticker shock, a good average rail weight on beef is #800.
So #800 x $8.12 = $6496 in your freezer. Ain’t nothing cheap anymore.
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