In a recent video by the agricultural YouTube channel Yanasa TV, hosted by Charlie Rankin, the rapid increase in beef prices is dissected. Rankin delves into various factors impacting the supply chain and production, explaining why beef prices have surged by more than 70% in recent years. Here’s a detailed breakdown of the key points discussed in the video and some additional commentary.
Inflation and Pandemic Impact
Charlie Rankin starts by highlighting that overall inflation has somewhat stabilized, yet beef prices continue to climb. Since 2021, beef prices have increased by 38%, a significant jump in a relatively short period. This rise is reminiscent of the 2009-2017 period when beef prices soared by over 70%. The pandemic exacerbated these fluctuations, with meat packaging companies shutting down, leading to supply chain disruptions.
Stocking Up and Future Shortages
Rankin emphasizes the importance of stocking up on beef now to prepare for potential future shortages and price increases. He suggests that purchasing beef in bulk from local farmers can help consumers hedge against rising costs. This approach not only ensures a steady supply of beef but also supports local agriculture.
Supply Chain Emission Tracking
The video discusses the challenges of tracking emissions in the supply chain and how different companies are approaching emission goals. Companies like Tyson are moving towards alternative protein sources and reducing meat packaging facilities, while others, like JBS, are increasing production facilities but facing legal challenges over emission control commitments.
Quality Recalls and Rising Input Costs
Rankin addresses the impact of quality recalls on beef prices. The US has seen a record number of food recalls, including beef, which disrupts supply and drives prices up. He also points out the ethical concerns of importing beef from countries with lower food safety standards, further complicating the market dynamics.
Corn Production Challenges
Droughts and flooding have significantly impacted corn production, which in turn affects beef prices. Corn is a primary feed for cattle, and fluctuations in its production directly influence meat costs. Rankin notes that the US cattle herd size has declined to a 73-year low, intensifying the pressure on traditional protein sources.
Global Regulations and Solar Cycles
The video highlights the broader challenges of combating global regulations and the impact of solar cycles on agriculture. Global policies, such as carbon taxes in Denmark, affect feed and fertilizer costs, which cascade down to beef prices. Additionally, solar cycles influence weather patterns, further complicating agricultural productivity.
The Decline in Cattle Herd Size
One of the most pressing issues Rankin discusses is the decline in the US cattle herd size. Currently, the herd size is at its lowest in 73 years, which is significant given the increasing demand for traditional protein sources. This decline is driven by persistent droughts and economic uncertainties that discourage ranchers from rebuilding their herds.
Legislative Uncertainty
Rankin points out the legislative uncertainties affecting the beef industry. The lack of a new farm bill and differing legislative approaches in the Senate and House contribute to the instability in the agricultural sector. This uncertainty hampers investment and long-term planning for ranchers and farmers.
“You Haven’t Seen Anything Yet!”
People in the comments shared their thoughts: “Someone is getting paid off. In Louisiana they have been dumping shrimp and crawfish from overseas. Last year shrimpers were getting .65 a pound. Our congress rep said they would put in bills to protect the fisherman the only thing they did is collect a welfare check. They all need to go.”
Another person added: “Think food prices are high now? You haven’t seen anything yet. Enjoy these prizes while you can!”
One commenter concluded: “The beef in the stores are not worth what they charge now.. plant based diet is all my body can stand with this disgusting food they are putting into society.”
The Future of Beef Prices
Concluding the video, Rankin predicts that beef prices will continue to rise in the foreseeable future. He stresses the importance of being prepared for ongoing price increases by investing in local food sources. The combination of environmental factors, global regulations, and market dynamics indicates that the trend of rising beef prices is unlikely to reverse soon.
Global Trade Policies
What are your thoughts? What long-term strategies can consumers adopt to mitigate the impact of rising beef prices on their household budgets? How can local farmers and ranchers better prepare for and adapt to the challenges posed by global regulations and environmental changes? How might changes in global trade policies affect the availability and pricing of beef and other traditional protein sources?
Check out the entire video for more information on Yanasa TV’s YouTube channel here.