US cattle farmers face rising costs and cautious consumers

US cattle farmers say higher operating costs, weaker retail demand and expanded imports are squeezing margins while national beef prices have climbed and herd sizes remain low.

US cattle farmers report growing financial pressure as operating costs rise and some consumers cut back on beef purchases. Farmers and retailers point to higher prices for feed, equipment and labour, alongside strong retail beef prices and a smaller national herd. Recent US moves to expand certain beef imports are also cited by producers as an added factor. Several farmers have diversified operations or adjusted retail prices in response. Key facts: - Beef and veal prices were reported up about 15 percent year-on-year in January, and ground beef prices remained near recent highs. - The US cattle population is at a 75-year low, which contributes to higher wholesale beef prices. - Farmers and small retailers report higher input and operating costs and, in some cases, lower customer demand; some independent shops reported sales declines after raising prices. - The US has adjusted import rules to allow more beef trimmings from Argentina and exempted some Brazilian beef from steep tariffs, steps that producers have highlighted. Summary: Ranch incomes and local retail sales are under pressure as costs climb and some customers reduce purchases. Farmers say changes in import policy are affecting market dynamics. Undetermined at this time.