Latest news with #DavidAnderson
Yahoo
5 days ago
- Business
- Yahoo
Ground Beef Just Hit $6.10 a Pound — Here's Why Prices Are Surging
Beef is caught in a perfect storm. And it's coming for your grocery bill. If your Fourth of July barbecue felt a little more expensive this year, you're not imagining things. Beef really is getting more expensive. Like eggs before it, the price hike results from a combination of issues all happening at once. According to the U.S. Department of Agriculture (USDA), the price of beef has increased by more than 8% since the beginning of 2025, hitting $9.26 per pound in July. Ground beef isn't faring much better, hitting $6.10 in June, almost a dollar higher than in 2024, according to the Bureau of Labor Statistics. And no, the price increases aren't due to tariffs. As the Associated Press reported, one of the issues is America's shrinking cattle supply, which has been decreasing for the past twenty years. It noted that as of the start of 2025, the U.S. had 86.7 million cattle and calves, the lowest number since 1951. And that's not all. As Food & Wine reported in late 2024, a flesh-eating parasite called the New World screwworm (NWS) was found in cattle in Mexico and is spreading north. This led the U.S. Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) to restrict the "importation of animal commodities originating from or transiting Mexico, effective immediately and pending further information from Mexican veterinary authorities on the size and scope of the infestation." And, as we predicted, this resulted in a significant drop in cattle imported into the United States, which already has far fewer cattle than in years past. 'It happened overnight, and in an environment where we already have tight supplies, we're going to end up in a spot where we're going to have tighter supplies," Charley Martinez from the University of Tennessee shared with Brownfield Ag News at the time. 'You have feed lot operators that are needing cattle now, and they no longer have a supplier, and they're going to have to go out to the sale barns and go look for cattle … Well, that's actually going to cause a short-run demand increase, and as demand increases, prices increase.'There is one glimmer of hope here. In early July this year, the USDA announced a new plan to breed millions of sterile flies at the Moore Air Base in Texas, just miles from the Mexico border, and release them to mate with wild female flies to prevent them from laying eggs inside cattle wounds, stopping the spread in its tracks. Then, there's climate change. The AP noted that a three-year drought, which started in 2020, dried out many pastures, leading to higher feed prices and forcing cattle ranchers to slaughter more female cattle to meet beef demand, which in turn reduced their herd sizes in subsequent years. Related: Inflation's Cooling, but Food Prices? Not So Much 'For them, the balance is, 'Do I sell that animal now and take this record high check?' Or do I keep her to realize her returns over her productive life when she's having calves?' David Anderson, a livestock economist at Texas A&M, told the AP. 'And so it's this balancing act, and so far the side that's been winning is to sell her and get the check.'And if Trump's tariffs do come to pass, things could get even pricer. According to National Beef Wire, the majority of America's cattle imports come from Canada, which faces a 35% tariff, followed by Mexico with a 30% tariff. New Zealand and Australia both face a 10% tariff, and Brazil faces tariffs of up to 50%.As for when prices will come down again, they may have to wait for the fall, when the weather and the demand for beef cool. Typically after midyear, beef prices tend to decline,' David Anderson, a professor and extension economist for livestock and food product marketing at Texas A&M, shared with USA Today. 'Seasonally, I think there's a chance we see lower prices than where we have been in the last few weeks.' Read the original article on Food & Wine Solve the daily Crossword
USA Today
22-07-2025
- Business
- USA Today
Beef prices at all-time high: Why summer grilling costs a lot more this year
Supply constraints and high demand have driven up beef prices. Experts warn that it could take years to rein prices back in. This year's Labor Day barbecue won't be cheap. Supply constraints and high demand have driven up the cost of beef, with 100% ground beef prices in June surpassing $6 per pound for the first time since data collection started in the 1980s, according to the Labor Department. While costs may dip slightly once grilling season ends, experts say significant price relief could be years away. 'If we're thinking about seeing prices lower than we saw last year or going back to prices 5 or 6 years ago, that's not very likely,' said David Anderson, a professor and extension economist for livestock and food product marketing at Texas A&M. 'But I do think there is a chance for some relief from this (summer) spike in prices.' Why are beef prices higher? A variety of factors have crunched the nation's cattle supply over the years, including recent drought conditions that raised the cost of cattle feed and pushed ranchers to send more cows to slaughter. The national beef cow herd is at its lowest point since 1961, according to a January report from the United States Department of Agriculture. The USDA in May also halted live cattle imports from Mexico due to the spread of New World Screwworm, further limiting the U.S.'s supply and fueling price increases. The fly's parasitic larvae can cause "serious, often deadly" damage to animals, according to the USDA. Despite rising prices, there's still plenty of demand for beef. The USDA estimates consumption this year will be up slightly from 2024. The U.S. has increasingly turned to imports to meet that demand, especially for lean beef trimmings used in ground beef. Roughly 20% to 30% of ground beef is brought in from countries like Australia and Brazil, according to the Iowa Farm Bureau. Tariff threats from the Trump administration could drive up prices even further. Brazil, for instance, is facing a 50% tariff starting Aug. 1. Currently, Brazilian beef is subject to a 10% to 36.4% tariff, depending on the size of the import, according to Reuters. "It adds a lot of uncertainty to the market,' Anderson said of looming tariffs. When will beef prices drop? Lower demand tends to spur lower prices, which means shoppers may find some modest relief once the weather cools. 'Typically after midyear, beef prices tend to decline,' Anderson said, adding shoppers are more likely to swap steaks for cheaper roasts later in the year. 'Seasonally, I think there's a chance we see lower prices than where we have been in the last few weeks.' Still, Anderson said prices are unlikely to drop back to the $3 to $5 range shoppers paid in recent years. Part of that is because it will take time for ranchers to build up their herds. If a rancher decides to keep a calf born this spring, for instance, they will need to wait years before it's big enough to send to market, Anderson said. 'That takes us to 2029 for increasing beef production,' he said. 'It's just biology and time.' The timing also hinges on continued demand for beef, according to Michael Swanson, chief agricultural economist at the Wells Fargo Agri-Food Institute. Higher beef prices are giving ranchers money to build up their herds; if demand wanes and cattle prices drop, recovery could take longer. Already, cattle farmers and ranchers face "razor thin profit margins,' according to a May report from American Farm Bureau Federation economist Bernt Nelson. 'It's a very, very nervous supply chain right now because of the record amount of money they have on the table doing what they do,' Swanson said. U.S. food prices: How much more will you spend at the supermarket in 2025? How to save money on beef Swanson's advice for shoppers looking to save money? Be open to different cuts of meat. According to June figures from the Labor Department: 'Everybody likes to buy filet mignon, but there are plenty of cuts that you can get a better value for your money,' Swanson said. 'There are cuts that some people don't want that have delicious flavor if you're willing to cook them slow.'
Globe and Mail
22-07-2025
- Business
- Globe and Mail
Barclays Sticks to Its Buy Rating for Schlumberger (SLB)
In a report released today, David Anderson from Barclays maintained a Buy rating on Schlumberger, with a price target of $46.00. The company's shares closed last Friday at $33.32. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Anderson is an analyst with an average return of -1.1% and a 46.23% success rate. Anderson covers the Energy sector, focusing on stocks such as Schlumberger, Cactus, and Baker Hughes Company. In addition to Barclays, Schlumberger also received a Buy from TR | OpenAI – 4o's Wes Rigmoor in a report issued on July 19. However, on July 18, Piper Sandler maintained a Hold rating on Schlumberger (NYSE: SLB). SLB market cap is currently $50.01B and has a P/E ratio of 11.42. Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SLB in relation to earlier this year. Most recently, in May 2025, Patrick de La Chevardiere, a Director at SLB sold 5,000.00 shares for a total of $167,900.00.
Yomiuri Shimbun
22-07-2025
- Business
- Yomiuri Shimbun
Beef Prices Have Soared in the US — and Not Just during Grilling Season
OMAHA, Neb. (AP) — Anyone firing up the grill this summer already knows hamburger patties and steaks are expensive, but the latest numbers show prices have climbed to record highs. And experts say consumers shouldn't expect much relief soon either. The average price of a pound of ground beef rose to $6.12 in June, up nearly 12% from a year ago, according to U.S. government data. The average price of all uncooked beef steaks rose 8% to $11.49 per pound. But this is not a recent phenomenon. Beef prices have been steadily rising over the past 20 years because the supply of cattle remains tight while beef remains popular. In fact, the U.S. cattle herd has been steadily shrinking for decades. As of Jan. 1, the U.S. had 86.7 million cattle and calves, down 8% from the most recent peak in 2019. That is the lowest number of cattle since 1951, according to the U.S. Department of Agriculture. Many factors including drought and cattle prices have contributed to that decline. And now the emergence of a pesky parasite in Mexico and the prospect of widespread tariffs may further reduce supply and raise prices. Here's a look at what's causing the price of beef to rise. Smaller herd The American beef industry has gotten better at breeding larger animals, so ranchers can provide the same amount of beef with fewer cattle, said David Anderson, a livestock economist at Texas A&M. Then in 2020, a three-year drought began that dried out pastures and raised the cost of feed for cattle, according to the American Farm Bureau. Drought has continued to be a problem across the West since then, and the price of feed has put more pressure on ranchers who already operate on slim profit margins. In response, many farmers slaughtered more female cattle than usual, which helped beef supplies in the short term but lowered the size of future herds. Lower cattle supplies has raised prices. In recent years cattle prices have soared, so that now animals are selling for thousands of dollars apiece. Recent prices show cattle selling for more than $230 per hundredweight, or hundred pounds. Those higher prices give ranchers more incentive to sell cows now to capture profits instead of hanging onto them for breeding given that prices in the years ahead may decrease, Anderson said. 'For them, the balance is, 'Do I sell that animal now and take this record high check?' Or 'do I keep her to realize her returns over her productive life when she's having calves?'' Anderson said. 'And so it's this balancing act and so far the side that's been winning is to sell her and get the check.' Disease dilemma The emergence of a flesh-eating pest in cattle herds in Mexico has put extra pressure on supply because officials cut off all imports of cattle from south of the border last year. Some 4% of the cattle the U.S. feeds to slaughter for beef comes from Mexico. The pest is the New World screwworm fly, and female flies lay eggs in wounds on warm-blooded animals. The larvae that hatch are unusual among flies for feeding on live flesh and fluids instead of dead material. American officials worry that if the fly reaches Texas, its flesh-eating maggots could cause large economic losses as they did decades ago before the U.S. eradicated the pest. Agricultural economist Bernt Nelson with the Farm Bureau said the loss of that many cattle is putting additional pressure on supply that is helping drive prices higher. Tariff trouble President Donald Trump's tariffs have yet to have a major impact on beef prices but they could be another factor that drives prices higher because the U.S. imports more than 4 billion pounds of beef every year. Much of what is imported is lean beef trimmings that meatpackers mix with fattier beef produced in the U.S. to produce the varieties of ground beef that domestic consumers want. Much of that lean beef comes from Australia and New Zealand that have only seen a 10% tariff, but some of it comes from Brazil where Trump has threatened tariffs as high as 50%. If the tariffs remain in place long-term, meat processors will have to pay higher prices on imported lean beef. It wouldn't be easy for U.S. producers to replace because the country's system is geared toward producing fattier beef known for marbled steaks. Prices will likely stay high It's the height of grilling season and demand in the U.S. for beef remains strong, which Kansas State agricultural economist Glynn Tonsor said will help keep prices higher. If prices remain this high, shoppers will likely start to buy more hamburger meat and fewer steaks, but that doesn't appear to be happening broadly yet — and people also don't seem to be buying chicken or pork instead of beef. Nelson said that recently the drought has eased — allowing pasture conditions to improve — and grain prices are down thanks to the drop in export demand for corn because of the tariffs. Those factors, combined with the high cattle prices might persuade more ranchers to keep their cows and breed them to expand the size of their herds. Even if ranchers decided to raise more cattle to help replace those imports, it would take at least two years to breed and raise them. And it wouldn't be clear if that is happening until later this fall when ranchers typically make those decisions. 'We've still got a lot of barriers in the way to grow this herd,' Nelson said. Just consider that a young farmer who wants to add 25 bred heifers to his herd has to be prepared to spend more than $100,000 at auction at a time when borrowing costs remain high. There is typically a seasonal decline in beef prices as grilling season slows down into the fall, but those price declines are likely to be modest.
Fast Company
21-07-2025
- Business
- Fast Company
Beef prices soar to record highs in the U.S.
Anyone firing up the grill this summer already knows hamburger patties and steaks are expensive, but the latest numbers show prices have climbed to record highs. And experts say consumers shouldn't expect much relief soon either. The average price of a pound of ground beef rose to $6.12 in June, up nearly 12% from a year ago, according to U.S. government data. The average price of all uncooked beef steaks rose 8% to $11.49 per pound. But this is not a recent phenomenon. Beef prices have been steadily rising over the past 20 years because the supply of cattle remains tight while beef remains popular. In fact, the U.S. cattle herd has been steadily shrinking for decades. As of Jan. 1, the U.S. had 86.7 million cattle and calves, down 8% from the most recent peak in 2019. That is the lowest number of cattle since 1951, according to the U.S. Department of Agriculture. Many factors including drought and cattle prices have contributed to that decline. And now the emergence of a pesky parasite in Mexico and the prospect of widespread tariffs may further reduce supply and raise prices. Here's a look at what's causing the price of beef to rise. Smaller herd The American beef industry has gotten better at breeding larger animals, so ranchers can provide the same amount of beef with fewer cattle, said David Anderson, a livestock economist at Texas A&M. Then in 2020, a three-year drought began that dried out pastures and raised the cost of feed for cattle, according to the American Farm Bureau. Drought has continued to be a problem across the West since then, and the price of feed has put more pressure on ranchers who already operate on slim profit margins. In response, many farmers slaughtered more female cattle than usual, which helped beef supplies in the short term but lowered the size of future herds. Lower cattle supplies has raised prices. In recent years cattle prices have soared, so that now animals are selling for thousands of dollars apiece. Recent prices show cattle selling for more than $230 per hundredweight, or hundred pounds. Those higher prices give ranchers more incentive to sell cows now to capture profits instead of hanging onto them for breeding given that prices in the years ahead may decrease, Anderson said. 'For them, the balance is, 'Do I sell that animal now and take this record high check?' Or 'do I keep her to realize her returns over her productive life when she's having calves?'' Anderson said. 'And so it's this balancing act and so far the side that's been winning is to sell her and get the check.' Disease dilemma The emergence of a flesh-eating pest in cattle herds in Mexico has put extra pressure on supply because officials cut off all imports of cattle from south of the border last year. Some 4% of the cattle the U.S. feeds to slaughter for beef comes from Mexico. The pest is the New World screwworm fly, and female flies lay eggs in wounds on warm-blooded animals. The larvae that hatch are unusual among flies for feeding on live flesh and fluids instead of dead material. American officials worry that if the fly reaches Texas, its flesh-eating maggots could cause large economic losses as they did decades ago before the U.S. eradicated the pest. Agricultural economist Bernt Nelson with the Farm Bureau said the loss of that many cattle is putting additional pressure on supply that is helping drive prices higher. Tariff trouble President Donald Trump's tariffs have yet to have a major impact on beef prices but they could be another factor that drives prices higher because the U.S. imports more than 4 billion pounds of beef every year. Much of what is imported is lean beef trimmings that meatpackers mix with fattier beef produced in the U.S. to produce the varieties of ground beef that domestic consumers want. Much of that lean beef comes from Australia and New Zealand that have only seen a 10% tariff, but some of it comes from Brazil where Trump has threatened tariffs as high as 50%. If the tariffs remain in place long-term, meat processors will have to pay higher prices on imported lean beef. It wouldn't be easy for U.S. producers to replace because the country's system is geared toward producing fattier beef known for marbled steaks. Prices will likely stay high It's the height of grilling season and demand in the U.S. for beef remains strong, which Kansas State agricultural economist Glynn Tonsor said will help keep prices higher. If prices remain this high, shoppers will likely start to buy more hamburger meat and fewer steaks, but that doesn't appear to be happening broadly yet — and people also don't seem to be buying chicken or pork instead of beef. Nelson said that recently the drought has eased — allowing pasture conditions to improve — and grain prices are down thanks to the drop in export demand for corn because of the tariffs. Those factors, combined with the high cattle prices might persuade more ranchers to keep their cows and breed them to expand the size of their herds. Even if ranchers decided to raise more cattle to help replace those imports, it would take at least two years to breed and raise them. And it wouldn't be clear if that is happening until later this fall when ranchers typically make those decisions. 'We've still got a lot of barriers in the way to grow this herd,' Nelson said. Just consider that a young farmer who wants to add 25 bred heifers to his herd has to be prepared to spend more than $100,000 at auction at a time when borrowing costs remain high. There is typically a seasonal decline in beef prices as grilling season slows down into the fall, but those price declines are likely to be modest.
