Show an ad over header. AMP

I am the FIRST

Beef prices are on the rise — and likely will be for the next few years

The beef industry is having a rough year — and consumers are footing some of the bill from the fallout.

Why it matters: The ransomware attack on meatpacking giant JBS is the latest hit. But other blows, like droughts, could cause sticker shock to stick around for years.


What they're saying: The issues will "increase beef prices probably for the next two to three years," given beef's long production cycle, says Katelyn McCullock, a senior economist at the Livestock Marketing Information Center.

Where it stands: Beef and veal prices are up over 3% from a year ago, according to the latest government data.

What's happening...

  • Dry conditions across the country. It throws a wrench in the pasture and hay production critical for cattle, says McCullock.
  • Pandemic hangover. Longtime cattle backlogs "came home to roost ... and there's just not enough capacity to catch up in the beef-packaging industry right now," says Matt Wiegand, a commodity broker at FuturesOne. (In other words, too many cattle for the available space to package it.)
  • The JBS ransomware attack — which pushed some of its plants offline — "certainly didn't help" with packaging companies trying to keep up, Derrell Peel, an agricultural economist at Oklahoma State University, tells Axios.

Worth noting: Meatpackers have been hit by other headwinds as they also deal with continued fallout from COVID-19.

  • Fellow meatpacking giant Tyson Foods said last week it would appoint its fifth new chief executive in as many years.
  • Tyson and JBS and other packers paid millions to settle price-fixing suits earlier this year.

The bottom line: "Your food bill is going up, but your meat bill might increase a little bit faster than other food products," says McCullock.

Biden administration buys 200 million additional doses of Moderna’s COVID vaccine

The Biden administration has purchased an additional 200 million doses of Moderna’s coronavirus vaccine, the biotech company announced Wednesday.

Why it matters: Moderna says the additional doses could be used to vaccinate children or — if necessary — as a booster shot.

Keep reading... Show less

Live updates: Biden and Putin land in Geneva ahead of summit

President Biden is set to meet with Russian President Vladimir Putin in Geneva for five hours of talks on Wednesday, a highly anticipated summit that comes as both sides say U.S.-Russia relations have sunk to a new post-Cold War low.

The latest: Putin arrived in Geneva shortly before 7 a.m. ET and traveled via motorcade to Villa La Grange, a mansion set in a 75-acre park overlooking Lake Geneva. Biden arrived at around 7:20 a.m. ET. The two leaders are expected to take a photo with Swiss President Guy Parmelin before the meeting begins.

Keep reading... Show less

Biden-Putin summit: What to expect when you're not expecting much

After a bitter blast from Putin and tough talk from Biden, both sides agree: Don't count on much from Wednesday's summit between President Biden and Russian President Vladimir Putin.

What they're saying: "We’re not expecting a big set of deliverables out of this meeting," a senior Biden administration official told reporters on Air Force One from Brussels to Geneva. "No breaking of bread."

Keep reading... Show less

Florida's early reopening could make it a business travel mecca

As post-pandemic business travel comes back, experts say Florida's reopening policies should allow it to lock in a significant share of returning corporate events and meetings.

Why it matters: There's a lot of money to be made — with a lot of people itching to travel — after the sector lost $97 billion in spending last year, according to a new Tourism Economics analysis by the U.S. Travel Association.

Keep reading... Show less

There isn’t a worker shortage in the U.S. — there’s been a worker awakening

Many politicians, pundits and business owners have said pandemic-era enhanced unemployment benefits are keeping would-be workers at home. But that's a much too simplistic explanation of today's employment situation.

The big picture: Many hard-hit sectors are rebounding faster than anecdotal evidence would suggest. And when jobs are hard to fill, a broader worker awakening over the past year is part of the reason.

Keep reading... Show less

Biden's surprise pick for FTC chair, a leading tech critic, is already rocking boats

By naming tech critic Lina Khan to chair the Federal Trade Commission Tuesday, the White House made clear it is dead serious about antitrust enforcement and other measures to rein in Google, Facebook, Apple and Amazon.

The intrigue: By naming Khan FTC chair just hours after the Senate confirmed her appointment as one of five commissioners at the agency, the White House took both the industry and many D.C. insiders by surprise.

Keep reading... Show less

MedPAC says higher prices drove up Medicare drug spending

The amount Medicare spent on drugs that are dispensed at pharmacies increased 26% from 2013 through 2018, members of the Medicare Advisory Payment Commission wrote in their new annual report.

Why it matters: MedPAC members put the spotlight on pharmaceutical companies, attributing "nearly all of the growth ... to higher prices rather than an increase in the number of prescriptions filled by beneficiaries."

Keep reading... Show less

China's government issues warning after sending record 28 planes over Taiwan

China's government issued a warning to "foreign forces" after Taiwan reported a record 28 Chinese military planes flew over the self-governed island's airspace Tuesday, per Reuters.

Why it matters: The statement and deployment of aircraft including fighter jets and bombers comes after G7 leaders issued a statement Sunday urging the Chinese government to respect human rights and calling on peace and "stability across the Taiwan Strait."

Keep reading... Show less

Insights

mail-copy

Get Goodhumans in your inbox

Most Read

More Stories