https://www.cnn.com/2022/07/25/business/drought-farmers-cows/index.html

With smaller herds and fewer breeding cows, the next two years could spell higher beef prices for consumers. The US Department of Agriculture, or USDA, is projecting a 7% decline in beef production next year.

  • Sphere_Bear [he/him]
    ·
    2 years ago

    "Sell their cows to who, Ben?"

    Seriously though, if they're becoming unsustainable due to drought then who's buying them? The article doesn't say but my guess would be some Blackrock-like company that owns enough land to move cattle to wherever there isn't a drought and then benefit massively from increased prices.

    • D61 [any]
      ·
      2 years ago

      Its a slow decline, so with a non drought year, every acre of field can support "X" cows for "X" days. As the rain fall patters change, specifically during the hottest part of the year, it means that the same acre of field can only support "Y" cows for "X" days. So either you keep the same number of cows but buy more land to rotate your cows to or start scaling back your herd so that the same amount of acreage can support the reduced number of cows until its time to take them to the sale barn. Now year on year droughts, and longer and longer periods of zero rain during the hottest parts of the year could mean that the acreage will support fewer and fewer cows.

      This should make it more financially sustainable for the rancher/farmer but they don't typically get to set their prices so all the price increases that the consumer will see are just increased revenue for all the middle men that are involved after the cows have been sold.