High beef prices have been making headlines for both producers and consumers, and those pressures are contributing to some meat processing plant closures across the United States. According to Brenda Boetel, Department Chair for Agricultural Economics at the University of Wisconsin–River Falls, the main reason behind the closures comes down to supply.
Boetel says the U.S. cattle herd is currently the smallest it has been in about 75 years, making it more difficult for plants to secure animals to process. “Essentially we have the smallest beef cattle herd that we’ve had in 75 years,” Boetel explained. “Plants are having to pay higher prices for animals, and sometimes there just aren’t enough animals for them to operate at full capacity.”
While some consumers may point to increased imports of Argentine beef, Boetel says those imports are not the cause of plant shutdowns. Instead, imported beef helps fill a different role in the market. Lower-cost beef from Argentina is often used for ground beef products, while the U.S. continues exporting higher-value cuts like Choice and Prime steaks. “We’re importing beef that costs less and exporting higher valued beef,” Boetel said. “At the end of the day, that’s very good for agricultural producers.”
Looking ahead, Boetel expects beef prices may still rise slightly in 2026 because of the limited cattle supply. However, she says increases are unlikely to be as steep as the jumps seen in 2024 and 2025. Despite the industry adjustments and some plant closures, Boetel says consumers and producers alike shouldn’t worry about running out of beef anytime soon.
Leave a Reply