The latest report from the U.S. Department of Agriculture (USDA) presents alarming news: the U.S. Annual Cattle Inventory has declined for the sixth consecutive year, plunging to a total of 86.7 million head as of January 1, 2025. This marks the lowest head count seen in 74 years.
The consistent decrease in cattle numbers over the past six years underscores persistent challenges within the beef industry. Notably, as of January 1, 2025, the number of beef cows has fallen to 27.9 million head, a 1% drop from the previous year. In contrast, milk cows have slightly increased, reaching 9.35 million head.
Additionally, the report indicates a 1% decline in calves under 500 pounds and a minor reduction in the U.S. calf crop, estimated at 33.5 million head. Furthermore, the total cattle on feed for the slaughter market is 14.3 million head, down by 1% compared to the previous year.
This downward trend has far-reaching consequences for the beef market. With fewer cattle available, prices have surged to unprecedented highs, presenting challenges for both producers and consumers.
h/t IAmNotAnEconomist
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