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Cattle Farmers Expect Rising Beef Prices

By Network Indiana

Posted September 6, 2011

The Indiana Beef Cattle Association blames rising beef prices on numerous factors including the drought plaguing the southwest, an increase in worldwide demand for beef and the lower value of the U.S. dollar.

IBCA Vice President Joe Moore said the coming price hike is on top of one the market has already shouldered.

"The regular retail prices, what's on that T-bone steak week in and week out when it's not a featured item that week is going to keep going up and up and up," he said. "Today they're quite a bit higher than they were even a year ago."

Moore said the severe drought in Texas has forced a massive cattle sell-off, adding rising grain prices are also a concern.

"As long as corn is $7.40 a bushel, it's very difficult for cattle farmers to make any money so nobody is getting into the business," Moore said.  "And if you're like me and you love a good steak, it's going to be important for those people to continue to raise that product."

Moore said heavy rainfall in the southwest would offer some price relief for farmers and consumers alike.

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