According to Texas-based cattle producer Pete Bonds, U.S. beef exporters face not only higher domestic prices, but also a stronger U.S. dollar, making American beef less attractive in international markets.
"The future of this industry is not here in the United States," Bonds told Reuters.
Reuters reports the U.S. beef cow herd in January was the smallest since 1962 at 28.9 million head. More recent official data shows this number was higher in July when it reached 29.4 million, but that's still around 3% lower than the same period last year.
Tyson Foods, a leading U.S. producer of chicken, beef and pork products, recently reported earnings that reflected the state of the industry.
For the September quarter, the company's beef segment generated $5.03 billion in sales but faced an operating loss of $323 million. Volume fell 6.7% from last year as the average price increased 10.2%.
Follow These Steps if you Want to Retire Early
Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.
Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.