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Fears of a meat recession in the United States

Fears of a meat recession in the United States

The US meat supply is likely to drop significantly in the coming weeks, distribution giant Good Ranchers has warned on social media for a few days.

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“The meat recession is hitting and product supplies are about to drop,” the company said.

Climate change, including increased droughts in many states, has reduced livestock herds.

Good Ranchers warns that “our total supply of meat for the next year has decreased significantly.”

A commodity management expert confirms this.

“US beef supply will continue to shrink through 2023, driving up beef prices for consumers through at least the first quarter of 2024,” said Walter Konish in an interview with Fox News, chief commodity strategist at Hilltop Securities.

According to the USDA, the number of cows moving from pastures to feedlots for slaughter decreased by 4% in September. In some areas, such as Kansas, this drop is as high as 11%.

Drought has persisted in many US states since 2021: Kansas, Nebraska, Oklahoma and Texas.

Areas like Texas, western Oklahoma, and southwestern Kansas, in particular, haven’t seen heavy rain since September 2021.

As a result, the availability of pastures has diminished. Cattle females were also culled, which limited the breeding of animals.

Unfortunately, even as drought begins to ease and pasture conditions improve, it will take time for the herds to rebuild.

These conditions, along with the high cost of certain commodities, such as corn and wheat, as well as operating costs, such as fuel and labor costs, always cause beef prices to rise.

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