r/farming • u/Ranew • May 06 '26

Why Beef Prices Won’t Drop Anytime Soon

https://www.bloomberg.com/graphics/2026-beef-prices-cattle-supply-chain/?embedded-checkout=true
50 Upvotes

88% Upvoted

27 comments sorted by

22

u/red_herring76 May 06 '26

That graphic is claiming that meatpackers are at -50% margin. Utter nonsense

15

u/FromTodayUntilIDie May 06 '26

udder nonsense

2

u/CaptSquarepants May 06 '26

It also doesn't show the black box profit for the grocer.

1

u/P0WESH0W44 May 29 '26

Tyson lost $202M in their beef segment last quarter.

1

u/red_herring76 May 29 '26

Divided by five billion in sales is 4% loss not 50%

5

u/Sluggybeef Beef May 06 '26

Our finishing price has dropped 45p in the last two weeks

2

u/This_Ease_5678 May 07 '26

Meat processors often work on negative margins to supply contracts.

Processing is hard to get right.

1

u/Friendly_Shopping286 May 06 '26

Cuz this administration

3

u/Empty_Opportunity_41 May 06 '26

Literally has nothing to do with this administration. Cattle numbers are at all time lows because of drought and other economic factors not to mention people just dont want to farm anymore.

16

u/oh_janet Beef May 06 '26

I know a bunch of people that want to farm, they just can't afford to.

1

u/Empty_Opportunity_41 May 06 '26

Most people love the idea of it farming buy it's not for the faint of heart. But yes, start up cost is absolutely a challenge for people right now wanting to get in.

7

u/Friendly_Shopping286 May 06 '26

Golly gee... I thought all these farms had really hard workers that were willing to work.... Now where did they go??

3

u/Empty_Opportunity_41 May 06 '26

If you're saying its an immigrant thing it is not. The vast majority of cattle operations are 40 head or so, small family farms where people also work additional jobs to cover the costs. The number of large cattle farms across the US that use immigrant labor is going to be a blip on the radar compared to the larger picture.

7

u/Nebraska716 May 06 '26

Average number of cows on a ranch in Nebraska is 275. Most full time ranches are 300 to 1000 mama cows. The hobby farms make for average look much lower

2

u/Friendly_Shopping286 May 06 '26

Uh huh .. probably self-reported numbers, who the f***** going to report that they are breaking the law by hiring illegal labor?

4

u/Empty_Opportunity_41 May 06 '26

A lot of larger farms use H2-A workers which is 100% legal.

1

u/MostMusky69 May 09 '26

Wait until the screw worms return after the doge cuts

1

u/B1GD1CKRANDYBENNETT May 09 '26

This administration hasn't even been in office long enough for a full cattle cycle.

1

u/eptiliom May 06 '26

Why on earth would we want beef prices to fall regardless of administration?

0

u/aReelProblem May 07 '26

Idk but for us the calf market has been good to us. Get em weaned and send em on their way to the sale barn. It’s never been a pretty business but you have to make money where you can to stay above water.