ANALYSIS: Stiff Competition for Lean

In conversations with cow packers across the country, a re-occurring topic of discussion is diminishing margins as they contend with higher prices to compete for animals in short supply. This sentiment is reinforced by the graph below, highlighting the USDA Weekly National Dressed Direct Cow Market (all weights), which soared to a record high of $225.19/cwt in August 2023 and has remained elevated since.

Despite the historic surge in cow pricing, the available supply continues to contract. As of the week of January 15, cow and bull slaughter declined over 16%...

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