Cattle herds shrink as Southeast drought impacts beef supply

MOUNT GILEAD, N.C. — Ongoing drought and high temperatures in the Southeast are severely impacting cattle farming, leading to reduced beef production and driving up consumer prices.

Matt Henley, who owns Pee Dee Premium in Mt. Gilead, has seen his herd shrink and expects elevated prices to persist for years.

The challenging weather conditions have made it difficult for farmers to grow sufficient feed for their cattle, impacting their health and growth rates.

This situation affects not only independent farms like Pee Dee Premium but also commercial operations supplying grocery stores, contributing to higher costs for consumers across the region.

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Henley, who operates Pee Dee Premium in Mt. Gilead, tends to a herd of approximately 130 cows. This number is a reduction from an earlier count of 170 animals.

Henley stated that the reduction was a direct response to resource scarcity. “We went from 170 animals down to about 130, and that was just to mitigate the risk of running out of food,” Henley said.

The drought has significantly hindered the growth of food for cattle. Henley estimated that the hay yield earlier this year was only about 30% of its expected levels.

Additionally, grass has been growing much slower, resulting in fewer nutrients for the cows and slower growth rates, which in turn reduces beef production and increases its cost.

Beyond drought, high temperatures pose a major challenge. Henley monitors how efficiently his cows can cool down, noting that recent daytime and nighttime temperatures have been so high that some cows cannot cool down enough to eat on certain days.

This heat stress has led to significant weight loss among his animals. “We had animals that lost 100 pounds in 30 days,” Henley said. He added, “When you put on half a pound or at most a pound a day, it takes a long time to make that back up.”

These farming challenges, combined with other national factors, are contributing to sustained high beef prices for consumers.

According to the U.S. Bureau of Labor Statistics, the price per pound of 100% ground beef is currently around seven dollars. This represents an increase of more than 70 cents per pound since June of the previous year.

Henley predicts that it will take a substantial amount of time for beef prices to return to lower levels. “I think you’re looking at a minimum three to five years before prices really come down significantly,” Henley said.