The U.S. beef herd is fat, but ranchers aren’t so happy.
American cattlemen, who were already grappling with an oversupply of plump livestock that were driving prices lower, are now facing a drop in demand as the economic slowdown in Asia reduces the worldwide appetite for beef.
The bottom line? Consumers should soon start seeing supermarket circulars advertising sales on hamburger and brisket.
For now, grocers and restaurants are still riding out high profit margins from a historic two-year rally in beef prices, said Pete Bonds, a Saginaw rancher who heads the Texas and Southwestern Cattle Raisers Association. But with wholesale pricing down, he said the market can only hold out so long before one of the major grocery store chains starts slashing prices and forces others to do the same.
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