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MN | While I'm sure that the those two play a role in reduced supply of beef, thus higher prices. I would place more of the blame on the huge amount of currency the Fed has pumped into the system. All commodities have risen really. Beef has just gone along for the ride, and probably hasn't kept up. As we continue to print money and the average joe loses purchasing power they will more frequently trade down to pork and chicken (maybe even fish and eggs). Because beef is so inefficient comparatively in the protein marketplace.
I don't think we can discount the role of higher corn prices either (whether driven by ethanol or not), it's given farmers a more attractive alternative for their labor. The higher someone's crop income the less likely they will put up with the 'challenges' of having livestock. So we get less cow men.
Finally, it bugs me when people think that other countries objections to the use of things like zilmax or optiflexx are actual health concerns. They are protectionist policies pure and simple and if they didn't exist Russia or whoever would just find something else to use as a trade barrier. IMO, we should label everything and let the consumers and the market figure it out.
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A couple more reasons beef is so high priced
