May 27, 2004

 

 

US Farmers Not Profiting From High Beef Prices

Beef farmers say drought, a cattle shortage and increasing farm expenses are driving beef prices through the roof. Even with the price hike, they are not seeing more money in their pockets.

 

"We are making a living but we are not profiting a lot," says beef researcher Travis Ingram.

 

Beef farmers say although the price of beef is up in stores, they are paying higher prices as well.

 

"Prices are up on cattle, which is good a thing. But prices are also up on fuel, flavor, metal, wood cost, feed cost and fertilizer cost," says Ingram.

 

Travis Ingram is a beef researcher for the University of Georgia. He says the rising cost of raising cattle has seriously cut into recent profit gains. 

 

High prices are not unusual for the spring. But a recent shortage of cattle and no shortage of demand have keep prices soaring.

 

"A lot of it can be contributed to the Atkins diet and the protein diets. People are eating beef," says Ingram.

 

But research being done at this farm hopes to control future beef prices. 

 

Researchers are experimenting with more drought tolerant grass. They hope better feeds will increase quality and create a ripple effect on lower overall cost raising steer.

 

"We are trying different feeds to get better feed conversation, we are researching more drought resistant grasses," says Ingram.

 

Researchers say they hope their findings will help make beef prices less volatile. Farmers say consumers can expect beef prices to drop during the Fall as more cattle are slaughtered.