Both of those factors are turning around. “The expansion of the beef herd is just beginning and will likely extend for multiple years,” he wrote.
Beef prices in the grocery store averaged a record $5.55 per lb in the first quarter of this year and are likely to remain strong through 2016, said Purdue economist Chris Hurt at farmdocdaily. The high beef prices will encourage poultry and pork output to grow rapidly during the period to offset the tight supplies of beef. Hurt said cattle numbers have been falling for years, in part because of weak calf prices and poor pastures.
Both of those factors are turning around. “The expansion of the beef herd is just beginning and will likely extend for multiple years,” he wrote.