'The future of this industry is not in the United States': The US is importing a record amount of beef, exporting less as cattle numbers hit the lowest level in decades — here's why

This significant decline in cattle, driven by years of severe drought damaging grazing lands, has resulted in higher beef prices domestically.

Consumers can already feel the impact. The latest Consumer Price Index report showed that the price of beef and veal in the U.S. was up 8.9% in October from a year ago.

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%.