Beef prices in the U.S. have reached highs not seen in almost 30 years because of high export demand and dwindling herd numbers. The average price of fresh beef has reached $5.28 per pound in February according to the U.S. Department of Agriculture (USDA) – marking a 5% increase from the prior month. Tight supplies are one cause of the increase. The cattle herd in the U.S., the biggest beef producer in the world has reached a 63 year low, in part due to the difficult winter and the blizzard of October 2013 which killed tens of thousands of cattle in the Dakotas. In an effort to rebuild herds, producers are holding back cattle. Commercial cow slaughter for the first quarter of 2014 is on pace to be the lowest since 2008 and beef production is expected to hit a nine-year low. Despite these conditions, demand from Asian markets continues, straining U.S. supplies. Beef exports this year were up 4% through the end of February and imports fell by 6%. The USDA has raised its export forecast to 2.515 billion pounds for 2014.
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