Diminished Beef Production and Exports

More of the same for the beef industry -- the trend of shrinking beef production will continue next year as USDA Outlook Board Chairman Gerry Bange explains in 2014

Bange: “We’re looking at 24.1 billion pounds and that is down 4 percent. We have a lower cattle inventory, lower cattle supplies we’ve seen in many many years. What we are seeing now we do expect to see the slaughter to be reduce -- especially the cow slaughter -- as more heifers are retained for expansion activities. That is what we think we are seeing now.”

Good news for ranchers with steers to sell this year with average prices being $128.63 per hundred weight. With herd numbers continuing lower, Bange shares prices for next year

Bange: “We’ve got it up another 3.4 percent, up to $133 per hundred weight.”

These higher prices and less supply mean a reduction in U.S. beef exports as well or next year as Bange explains.

Bange: “We see beef exports dropping nearly 5 percent -- 4.6 percent to be exact -- down to 2.3 billion pounds. The reason really simply stated is the tighter supply and higher prices. That will erode some of the that quantity demanded and as a result of that we think that beef exports will be lower in 2014.”