In Reply to: It's the processers making money not the ranchers posted by confused442 on September 17, 2026 at 09:32:36
The Profit Divide in the Beef Supply ChainCow-Calf Ranchers (The Winners): Producers who raise permanent herds of mother cows and sell feeder calves are benefiting the most. According to industry reports like the Drovers State of the Beef Industry, a large majority of surveyed producers report being profitable over recent years, driven by historically low national herd sizes (at a 70+ year low due to past droughts) that let them command high prices per hundredweight.
Feedlot and Finishing Operators (The Squeezed): While feedlots are selling finished cattle at high prices, they are forced to buy expensive feeder calves at all-time highs. Combined with rising feed and grain costs, their profit margins remain pinched despite high retail meat prices.
The Drivers Behind High Prices: The shrinking herd size—driven by years of drought across the Great Plains and restrictions on cattle imports—has squeezed supplies, pushing retail ground beef and steak prices to record highs for consumers.