Difficulties of American livestock producers and reduction of livestock population

In the US, farmers and livestock producers are struggling to maintain their businesses. The cost of land, fertilizer, and equipment is constantly rising, making it difficult for farms to operate without losses against the backdrop of unpredictable income from raising cattle.

Market pressure affects industry metrics and consumer prices. While the national herd numbered over 132 million livestock animals in 1975, American farms and ranches now keep just over 86 million animals. The average cost of a pound of ground beef reached $6.89 this year compared to about $2.50 in 2010.

According to Bill Bullard, head of the farmer advocacy group R-CALF USA, producers' declining incomes are driven by a "merger mania" among meatpackers. About 40 years ago, four large enterprises — JBS, Cargill, Tyson Foods, and National Beef Packing Company — handled slaughter for approximately 36% of operations, and by the mid-1990s they controlled 80% of all cattle slaughter operations in the US. The prices they set affect the value of livestock at every stage of the chain, leaving farmers with a smaller share of the profit.

An additional factor is the reluctance of children to continue the family business. Against the backdrop of a declining number of farmers and a decreasing livestock population, the question arises regarding the industry's ability to meet the growing demand for meat. If current trends continue, cheaper beef may be imported from Brazil and Canada.