A drought and record heat wave hit Oklahoma in 2011. Range fires consumed many square miles of pasture, The remaining grazing land produced no new grass in the burning heat. A shortage of hay caused prices to escalate to unheard of levels. A one hundred pound bale of alfalfa was bringing $25.00. Ponds were drying up.
All of the above forced farmers and ranchers to sell their reproducing herd down to a bare minimum and they were not paid top dollar for their cattle in spite of the prices of beef products in the stores.
Because of this reduction in reproducing herd size, fewer calves are being dropped in 2012 and the price for beef if being driven ever higher. The buying power of the dollar has also decreased contributing to escalating prices on most everything.
We went to a Mexican Food establishment last night and they had nice new menus. All prices were up by about 10%. Even higher special prices were listed for most dishes containing beef over those based on chicken or pork.
In the grocer's counter, a good steak is $6.00 to $7.00 per pound while roast cuts have risen to abut $4.00 per pound. Ground beef made from trimmings and bull and cow (canner and cutter) meat is over $3:00 per pound.
The buying power of the dollar shows little chance of recovery and the limited calf crop will continue its impact over the next several months. Get ready for steak at $10.00 per pound or invest in a large sack of beans.
This is truly a form of economic recovery which I have not seen since I was a small boy.
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