Where is the Beef?
A six month wait list for beef packages (quarters, halves and wholes) might seem crazy, but I think it will be our reality for awhile. Here is what is happening. There is a low inventory of beef in the United States. The following reasons have all contributed to low inventory:
- The dairy industry using sexed semen. Through genetic technology we are able to select female semen. Since dairy bull calves aren’t as desirable as heifers (girls), we like that option to use on our best cows. Dairy cattle make up a significant portion of the beef eaten in the USA.
- Droughts. There have been on going droughts throughout major hay producing states for most of this past decade. One year it is the Midwest. Then the next year it is the Mideast. Then Texas. All these places grow a lot of cattle feed. If feed is expensive, due to low supply, farmers tend to raise less cattle. It takes nearly two years to raise a beef animal from birth to butcher. It isn’t a quick turn around if you sell most of your cattle one summer due to drought.
- Beef is having a moment. We all know the nutritional density of beef. Its awesome. We are no longer scared of a little fat in beef. People are just eating more beef.
All of these things have led to higher beef prices for the farmer. We aren’t talking a little higher, exceptionally higher. For example: we sell all our Holstein bull calves within a week of birth. They don’t do well on an all grass farm. They are sold to farmers who feed grain. It wasn’t that long ago that we were getting $100 for these calves and thinking that was pretty good. For the past four years dairy bull calf prices have gone from $100 to $800 for us. I am even seeing reports of dairy bull calves going for $1000 and if the calf is crossed with Angus, they sell for $1200-$1300. These are three to seven day old calves. Its crazy.
We have heard many times over the past year “my farmer is no longer selling beef. Do you have any available.” Many farmers are taking these high prices and either selling calves at birth or selling their whole herd and retiring. They are making money without having to wait the 16-20 months before the animal can be butchered. It is a lot less risk. It makes complete sense. Today, the USA beef inventory is the smallest it has been since the 1950’s.
The reality is, we (Zweber Farms) are forgoing some high short term profit margins by selling beef direct to customers. We are playing the long game. If we sold everything as soon as they were born, we would have no beef for customers in 18-24 months from now. Someday beef prices will crash. They always do, but we don’t know when. This is the longest high price tide we have had in my memory.
Until that crash, we will continue to sellout of steaks within a week each month and have a six month waitlist for our beef packages (quarters, halves and wholes). We cannot raise more beef and we cannot raise them faster. On our farm, we only have so much pasture land and we only have so many mom cows to have babies.
We could raise our prices, but I think our prices are fair right now. Everyone here agrees that we never want to be a business that continually changes prices. Our prices are fair and we keep them that way. When we do a prices change we consider how long the price will be at that rate.
I know our low beef inventory can be frustrating to customers. Please know that we are raising as many beef animals as we can in a sustainable manner on our farm. That commitment is something you can always rely on.
In the meantime, we do have plenty of pork in stock. Pork is just as nutritionally dense as beef and its more affordable. Our pork chops have a lot of moisture and flavor. They aren’t your typical grocery store dry, bland chop. We also have shoulder and loin roasts in stock to make summer pulled pork sandwiches. Or try our spare and country style ribs on the grill. There are lots of pork options.
Reminder that we are open Tuesdays and Thursdays from 3-6pm. We will also be open this Saturday, June 21 from 11-2pm. We hope to see you at the farm!
Family and farm updates:
Erik graduated high school! Erik has been homeschooled since second grade and completed all his classes for graduation this spring. He plans to move to the northeast and pursue a job in the arbor industry. He loves biology, ecology, and working outside. It will be tough to see him go, but we cannot wait to visit the beautiful northeast often!
We finished first crop hay the first week of June. We do three to four crops each summer and this is what we feed our cattle over the winter. It was a decent crop and we had an awesome weather window. I honestly think this was the fastest we have hayed in many years. There were a few mechanical hiccups, but nothing major. The cattle should be happy this winter!
Take care for now and see you at the farm!
~Emily
