06/29/05 High beef prices

High Beef Prices Mike Johanns says beef prices are too high. I'm Jeff Keane and I'll have some comments about that right after this. Mike Johanns, Secretary of Agriculture, says beef prices are too high and he is worried American consumers will start choosing another source of protein. You know that might happen, but for the Secretary of Agriculture to make a statement like that make me just a little upset. I didn't read anything about Mr. Johanns saying beef producers need the prices they are getting today to help offset the cost of production. In 2003, the average retail price for choice beef was $4.32 per pound; the latest figure from the Agricultural Department's Economic Research Service shows the average is at $4.25 per pound. So the price has actually dropped, while prices for fuel and anything that has even rubbed against steel are much higher than in 2003 not to mention all the other supplies and services needs to produce beef. Mr. Johanns says beef supplies need to increase to drive down prices  this is all about opening the Canadian border for import into the U.S. Well, the U.S. is already shipping record levels of Canadian beef into the country. Johanns also states the USDA's goal is to normalize the beef trade worldwide. Maybe the USDA's goal should be to increase the U.S. beef herd. Right now we have the smallest cow herd since 1951. This way the beef prices will come down like Mike Johanns wants but at least the United States economy benefit rather than some other country reaping the benefits. I'm Jeff Keane. Western Livestock Report A/P