Meat prices rise, while Texas drought persists

Articles
January 28, 2009

Through the past weekend, the Texas drought has continued leaving little rain and a slipping economy in which central and west Texas farmers and cattle ranchers are suffering profoundly. Less than a quarter inch of rain has fallen on the western half of Texas since October, only 5-10% of what should normally fall during this seasonal period. Weather analysts are blaming a La Nina weather pattern (caused by cooler-than-normal Pacific waters off the coast of northern South America) for the severe dry conditions that are taking a significant toll on the Texas wheat crop and what cattle producers are calling the worst in 50 years. As of mid-January, 55% of wheat produced in the state was rated “poor to very poor”. Only 26% was rated “good”. As a result, the nation is seeing a rise in wheat prices, which started in December. With such a tremendous strain on cattle, ranchers are challenged with providing necessary food for their animals. The drought has left much of the hay crop with poor nutritive value, forcing producers to supplement the feed with protein. In addition, water supplies are low, and ranchers are getting water from alternate locations, soon to run out, another factor in the increased costs of maintaining a herd. Some ranchers are selling off a portion of their cattle, so they can put more money into a smaller herd, therefore breeding healthier animals in these environmental conditions.

Through the past weekend, the Texas drought has continued leaving little rain and a slipping economy in which central and west Texas farmers and cattle ranchers are suffering profoundly.

Less than a quarter inch of rain has fallen on the western half of Texas since October, only 5-10% of what should normally fall during this seasonal period. Weather analysts are blaming a La Nina weather pattern (caused by cooler-than-normal Pacific waters off the coast of northern South America) for the severe dry conditions that are taking a significant toll on the Texas wheat crop and what cattle producers are calling the worst in 50 years.

As of mid-January, 55% of wheat produced in the state was rated “poor to very poor”. Only 26% was rated “good”. As a result, the nation is seeing a rise in wheat prices, which started in December.

With such a tremendous strain on cattle, ranchers are challenged with providing necessary food for their animals. The drought has left much of the hay crop with poor nutritive value, forcing producers to supplement the feed with protein. In addition, water supplies are low, and ranchers are getting water from alternate locations, soon to run out, another factor in the increased costs of maintaining a herd. Some ranchers are selling off a portion of their cattle, so they can put more money into a smaller herd, therefore breeding healthier animals in these environmental conditions. 

Shoppers will feel the effects of the drought by seeing less for sale at the meat counter. With cows underweight by nearly 300 pounds below their normal weight, a lower quality beef is being produced. Meat prices are likely to rise.

Although some parts of western and northern Texas are seeing some light rain, it is doubtful that the total precipitation will turn the drought around. Warm and dry conditions are expected through the upcoming weekend.