America’s appetite for beef grows while cattle supply hits a 70-year low

In Nebraska, beef isn't just food, it's identity

But America's appetite is outpacing the herds that feed it. From global trade talks with countries like Argentina to small farms like Oak Barn Beef

demand is driving prices higher than ever and putting pressure on every step of the supply chain

At Oak Barn Beef, we're a fifth-generation cattle-raising family, and we sell and ship our beef nationwide

We also sell products like tallow and other kitchen necessities, farm-raised products, but beef is our bread and butter

Across the plains, herds are thinner, but demand is thick. Consumers keep filling their carts with beef even as prices reach new heights

The USDA's latest cattle inventory report shows just how tight supply has become

Those numbers aren't just statistics for cattle farmers like Hannah Klitz in West Point

They real pressures that start long before beef reaches the plate The U cattle herd is at a historical low which can affect again those live calf prices because the commodity market is driven by demand and supply

And when supply is lower and demand is still high, then the price increases, which does affect us

As of January 2024, there were about 87.2 million head of cattle in the U.S.

down 2% from the year before, the lowest level in more than 70 years

The calf crop, the next generation of cattle, also fell 2%, dropping to $33.6 million

It takes time to raise a cow, so when supply shrinks, there's no quick fix

That's why today's shortage drives tomorrow's prices. And those low numbers aren't just about market trends

Weather has been a major player too. Especially with drought-ridden years, you feel those effects so many years afterwards

because if people don't have enough water to feed their animals, then they have to sell those animals

Elliot Dennis an associate professor of livestock economics at the University of Nebraska says the market is being driven by both short supply and strong consumer appetite He says Americans love beef and they willing to pay premium prices to keep it on the table

At the same time, global trade deals are adding pressure. A new plan to expand Argentina's beef import quota would allow four times more product into the U.S. market

Dennis says that could temporarily lower cattle prices here, but the impact is likely short-lived

Argentina's share of U.S. imports would still be just over 1%. Those different factors can affect the commodity market pricing

which then in turn affects our business too because we are buying cattle around those commodity market pricing

So just looking at buying cattle for 2026 here soon, those cattle are so much more expensive than they have been in years past

And while imports get headlines, exports are where Nebraska shines. Dennis says high beef shipped to countries like Japan South Korea and Canada brings in more value than the lower ts that come into the U We went through the pandemic during those eight years and we saw a lot of changes in demand and how consumers shop during those times

So I think the pandemic just brought on a lot of the farm to table movement and people wanting to know where their food comes from and have trust in those sources

At Oak Barn Beef in West Point, that global demand is local

From farm to table, their family business ships nationwide, showing how Nebraska farms fuel both the economy and America's appetite

Nebraska beef makes up about 85 percent of all livestock sales in the state and more than half of total agriculture revenue

And even as producers work to rebuild herds, ysts expect prices to stay high, driven by consumer demand showing no sign of slowing down

With our input costs being so high, it does make our margins so slim that there's not a lot left at the end of the day

For Straight Arrow News, I'm Kaylee Carey. Read more ag stories right now on the Straight Arrow News mobile app or visit san.com