U.S. beef herd falls to lowest since 1962

The US beef cow herd dropped to its lowest level since 1962, US Department of Agriculture (USDA) data showed on Tuesday, after a severe drought raised costs for livestock feed, reported Reuters. Ranchers increasingly sent cows to slaughter last year, instead of keeping them to reproduce, as dry weather reduced the amount of pasture available for grazing in the western United States and on the Plains. At the same time, a tight labour market limited slaughtering at meatpacking plants. Declining supplies of cattle are expected to keep meat prices high for consumers, analysts said. "We're going to be dealing with some sharp beef-supply declines for the next three years straight and therefore higher beef prices," said Rich Nelson, chief strategist for commodity broker Allendale. "There will be no help in the coming years for the consumer." There were 28.9 million beef cows as of Jan. 1, down 3.6% from a year earlier, the USDA said. It was the smallest herd size for that date in 61 ...