Research
Beefing up: Strategies to shape a stronger US beef industry amid higher prices
The US beef industry is entering the anticipated rebuilding phase in the cattle cycle. Higher prices are expected across all cattle and beef markets in the coming years, requiring producers, processors, and end users to adjust strategies to manage elevated costs and limited cattle and beef availability. To stay resilient, the industry will want to focus on effective value creation, risk management, and business diversification.
The sector may see new record-high prices during the next several years. Competing with less expensive pork and poultry on price will be tough, so the industry must demonstrate the added value of beef while continuing to address quality challenges and align with consumer preferences.
The entire supply chain must improve risk management to tackle increasing costs and limited working capital. Diversification will help improve profitability and supply management as inventories tighten.