Do you find it odd that each week, tens of thousands of cattle heads just disappear from our food supply chains? Americans are being warned by ranchers that a meat recession is imminent as our herd of beef cattle continues to drastically decline. Numerous animal herds were destroyed this summer as a result of a significant sell-off, but the mass slaughter has continued into the fall and is now at an all-time high. Farmers are now warning us that it will take years for stocks to return to normal levels, so we must prepare to pay significantly higher costs for meat going forward. Alarm is being raised about this scenario in several parts of the
Farmers and ranchers are currently dealing with some of the most difficult conditions for livestock raising in more than ten years, and they are informing us that it will take some time to rebuild our country's cattle production. This is due to the convergence of numerous disruptions. As the US cattle herd continues to shrink, meat distributor Good Ranchers recently issued a warning to its customers that "a meat recession is knocking and supply is about to be tight." The cow herd has decreased as a result of droughts, according to Good Ranchers. "Our anticipated annual total meat supply has been drastically reduced. One of the key causes of the impending meat recession is this.
This crunch is also being caused by a wide range of other issues. The U.S. beef cow herd has been shrinking since long before ranchers experienced the greatest drought and the most extreme heatwaves in more than a century throughout the summer. According to the National Agricultural Statistics Service, the herd had decreased by 2.6 million cattle heads as of January 1, 2022, when compared to the same time last year. Mark Schultz, a market analyst for Northstar Commodity, reported that cow liquidation was about 9% to 9.5% higher than a year earlier in April, long before sweltering temperatures began to deplete water supplies and burn grass. This meant that the daily cattle slaughter was in the 126,000- to 128,000-head range.
The situation has significantly worsened throughout the summer. An extraordinary selloff began as a result of the shortage of water, with drought hurting the vast majority of U.S. farms and notably Texas ranchers...
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