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Feed prices - corn, that is - is high because the EPA mandates high percentages of ethanol be blended into the gasoline. Thus, a huge proportion of our corn crop ends up in our cars, rather than our mouths.
It's been that way for years, though. Although it certainly is a factor in beef pricing, it has nothing to do with the recent spike.
Yes, I need quite a bit of high quality iron, I had/have anemia. The cost of getting iron from red meat is not too fun....but I do my best with the INSANE prices. I am stocked up for next week, 5 days of high-iron foods:
Sorry, this doesn't jive at all. Do the herds that the ranchers can't afford to keep just disappear into thin air? No, when there's not enough feed to economically support the cattle population, production livestock is sent to slaughter along with the usual crop of beef calves. This would flood the market and should cause a short-term price decline followed by a price increase when the numbers stabilize and supply is reduced in relation to demand.
But this didn't happen. Yes, herds were trimmed during the 18-24 months of drought experienced in some cattle-producing parts of the country. The total US beef population is 3% less than it was in 2012. But we didn't see the price declines that should have occurred as a result of excessive shipping. Which tells me that the recent increase is just a market manipulation designed to make a few middlemen rich at the expense of the average beef consumer.
Its a combination of factors. First, there certainly was the drought that started in 2011 and has continued until this year. It drove up feed prices. Ranchers did sell off their herds and prices for beef were very cheap for quite a while. The problem becomes rebuilding the herd. This takes years, as cows don't reproduce that fast. That means the shortage lasts for quite a while and is still going on. Last year, one of the big slaughter houses in our area closed. At this point, with prices high, there is a shortage of cattle and prices are still high. It will take awhile for the herds to rebuild. I understand that from your point of view 3% decline isn't much, but that kind of a decline is about all you need to start prices up and induce a shortage. Same happens with oil. Once you have a shortage, prices will increase far and wide.
Yes, I need quite a bit of high quality iron, I had/have anemia. The cost of getting iron from red meat is not too fun....but I do my best with the INSANE prices. I am stocked up for next week, 5 days of high-iron foods:
Its a combination of factors. First, there certainly was the drought that started in 2011 and has continued until this year. It drove up feed prices. Ranchers did sell off their herds and prices for beef were very cheap for quite a while. The problem becomes rebuilding the herd. This takes years, as cows don't reproduce that fast. That means the shortage lasts for quite a while and is still going on. Last year, one of the big slaughter houses in our area closed. At this point, with prices high, there is a shortage of cattle and prices are still high. It will take awhile for the herds to rebuild. I understand that from your point of view 3% decline isn't much, but that kind of a decline is about all you need to start prices up and induce a shortage. Same happens with oil. Once you have a shortage, prices will increase far and wide.
But there is no shortage. Grocery stores were throwing out unsold beef before the herd reduction, and they are still throwing out unsold beef today.
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