Industry expert expects prices to continue to go up
Rising retail beef prices reflect a smaller herd, nationally, and higher costs for producers. Those prices are expected to increase by 10 percent this summer after jumping by 25 percent the last two years.
Market observers report the average retail price for a pound of beef was up 12 percent in February.
Texas Beef Council senior manager of product marketing Russell Woodward says he expects those prices to keep going up.
“Drought has had a big impact on beef prices the last two years,” Woodward says, “and it will continue to do so, moving forward.”
Woodward says he expects prices to go up another 2-to-3 percent, but he maintains there is still good value to be found on your store shelves.
He says higher production costs mean livestock producers aren't getting rich, even if the prices are still going up.
“Input costs, feed, fuel and fertilizer, are all more expensive. That means the cost of production keeps going up.”
Woodward says the increasing expense means livestock producers aren’t making as much profit as you might think, though the higher retail prices do help.