Customers around the world have seen beef costs rise lately, and Nicholas and Company wants to let you know why exactly this is happening. We don’t want our customers to be blindsided by the increase in pricing that is bound to continue for a while.
Cattle takes 24 months to be raised, grown, and become ready to be sent to suppliers. Suppliers are keeping this time frame in mind when they are asked about when they think the supply will become steadier again.
This price rise primarily comes from a lack of supply and an abundance of demand. The current spike in prices was driven by short-term weather events that exacerbated the cattle supply. Supplies to feed cattle are limited, and the cold weather and severe drought season has limited carcass weight gains.
Right now the U.S. cattle herd is at an all time low, it hasn’t been this small since 1951. It’s down nearly 1.4% from 2013 alone, and 2.1% from 2012.
We can only hope that cattle numbers will increase in the near future and prices will go back to normal.
Nicholas is doing its best to make sure you get the fairest price possible.