Beef prices skyrocket
By ROWENA PLETT
Staff writer
Cattlemen are smiling these days as prices for beef have risen substantially during the past three months.
According to Todd Domer of the Kansas Livestock Association, cattle prices are at all-time record highs.
Choice finished cattle in Kansas were bringing $.60 to $.70 per pound last spring. The price had climbed to $97 by Friday. Feeder cattle prices also have taken a big jump.
"We're not sure what's causing the rise in price, but it's a welcome thing for cattle producers," said Randy Mills of Florence. He owns and operates Strait Ranch.
He noted that heavy-weight fat cattle in feedlots have been sold. Those coming to market now are lighter weight, he said, and so, produce less pounds of beef.
Mills said the Canadian border has begun to open to allow boxed beef to come into the United States from Canada and prices may have peaked.
About one year ago, the border was closed to imports from Canada because of an isolated case of bovine spongiform encephalopathy, a highly contagious disease. Imports of live cattle are not expected to begin again until sometime in 2004.
Other factors also may be affecting the market. An extended western U.S. drought has caused ranchers to sell large numbers of cows and calves.
Bill Mathias, owner and operator of Herington Livestock Market, said he was in Colorado a year ago this summer when ranchers were selling livestock because of lack of grass.
At one auction, some 750 to 1,000 butcher cows were sold. The calves were bought off the cows and fattened, he said, but they also have been marketed and consumed.
Mathias noted that cattle in this area which normally would sell in September were sold in August.
He said the high prices will lead ranchers to retain heifers (young females) to rebuild their herds, which also will result in less cattle coming to market.
According to Mathias, late summer and fall rains caused cattle prices to jump another 15-20 cents per pound.
He predicts the market will remain strong for the next three to four years, especially if demand remains steady.
Greg Carlson of Carlson's Grocery in Marion said retail prices for beef have increased by 25 to 30 cents a pound since summer. He said the increased prices are resulting in a dip in beef sales.
Carlson said he did not know how long the higher prices will last but his experience has been that when beef prices go up, they tend to stay there.
"I think we're stuck with them," he said.
