04/18/2024
LONG POST ALERT...
The information below is a post from a fellow beef perveyor not an intent to scare at all but just to inform. We understand as consumers that we don't always understand what is driving prices of the items that we purchase for our family. So here is some insight on whats happening on the cattle market front which directly impacts our cost to process and produce beef.
We just received notice from our processing facility that our prices for packaging our beef has increased again. We are now at $1.35/lb on hanging weight which is equal to $2.70/lb live weight. (What that means is that roughly $700 per animal goes to just getting it in a package)
Here is the low down, not in our words but well stated.
"We are encouraging everyone to just consider your current market on meat right now.
Tuesday Last week, I watched feeder calves at the stock yard sell for $3+ per pound live weight. (I've never seen them that high before,ever)
Friday last week, I received a weekly market update on USA fattened cattle. Big box distributors are actually encouraging large chain stores to consider selling beef as a "Loss Leader" in the near future.
Yes, because the live purchasing prices on fattened cattle are so high, they're saying big packers are going in the hole processing and therefore asking stores to sell at a loss to help contain the situation. Will they comply? Will it matter?
My prediction: Summer and Fall meat prices are going to be a new record high. Your best deal on Beef this year is right now, and I look for that to change within a month(maybe two). More grocery ads and consumers will move to buy chicken and pork to compensate the higher beef pricing, which will cause chicken and pork to rise as well.
Corn prices will be the wildcard, I would think since we're on a record low number of fattened cattle across the country, we should have a surplus of corn but you never know."
All these factors drive cattle futures for the fall and winter. (Futures just simply is a prediction of the market based upon circumstances - so in short educated speculation but a HUGE factor for cattle/beef pricing.)
All of that to say this... use this info as food for thought as each of you secure proteins for your families over the next several months. For now we are just going to see how long we can ride the wave. If we have to adjust prices we will but we will do that responsibly taking each of you in consideration. Most importantly we will do what it takes to keep these creatures taken care of to the best of our ability. Much ❤️ from all of us here at A&M Farms Grass Fed Beef
