Greener Pastures Signaling Rebound in U.S. Beef Supplies
Signs of a rebound in U.S. beef supplies are taking shape with the changing color of the pastures on Glen Cope’s 2,000-acre ranch in Aurora, Missouri.
“It’s so green and lush,” Cope, 35, a fourth-generation calf breeder, said of the knee-high grasses that feed his cows about 55 miles from the Oklahoma border. “We’ve been getting plenty of rain. 2014 so far has let us consider expanding once again and make up for the numbers that we sold off.”
Pasture conditions in the U.S., the world’s largest beef producer, are mostly recovered from a 2012 drought that forced ranchers to shrink the domestic herd to a 63-year low. While it takes years to reverse a decline in animal supply, record-high beef prices and the increasing availability of cheap feed are providing incentives for some producers to begin expanding.
A production rebound would help slow beef-price gains that the U.S. government said will be the biggest of any food group this year except pork. Cattle futures that touched a record high in July already are showing signs of a shift, heading for their biggest monthly drop since before the peak of the drought. That signals lower costs for meat buyers including Ruth’s Hospitality Group Inc. (RUTH) and Hormel Foods Corp.
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http://www.bloomberg.com/news/2014-08-18/greener-pastures-signaling-rebound-in-u-s-beef-supplies.html
