Beef prices on the rise after 2012 drought

WEST LAFAYETTE, Ind. (WLFI) - Expect to pay more in the check-out line this year if you're buying beef products. 

Last year's drought dropped the national number of cattle to its lowest level since 1952.

"As we average $5 a pound for beef in 2012, we expect that to be around $5.20 a pound in 2013," agricultural economist at Purdue Chris Hurt said.

Experts said part of the rising prices boils down to Mother Nature last year.

"Part of that is because of last year's drought and the effect it had on last year's production last summer," beef specialist at Purdue Dr. Ron Lemenager said. "Part of it is because feed prices, and corn prices have been high."

"Last time feed was moderately priced was in 2007, and at that time each American was eating on average about 65 pounds of beef a year," Hurt explained.

But Hurt said it's a different story this year. U.S. cattle numbers have dropped to their lowest level since 1952. In Indiana, the beef herd has dropped by 18 percent since 2007. In 2012, the state lost 2 percent of the herd, or about 4,000 beef cows.

"We're only going to have about 55 pounds of beef available this year," Hurt said. "So a 10-pound reduction in each person's supply of beef just in the last six years."

"Bottom line of a low cow herd number is we get fewer cattle going to harvest and that will drive consumer beef prices to go up," Dr. Lemenager said.

"It will be available in the market place," Hurt explained. "We're still going to have those enjoyable steaks but they're going to be high priced and that includes 2013 through 2015.

Experts said if Mother Nature helps restore feed and forage supplies this summer, more farmers are expected to expand their beef herds in the fall.