Purchase a Ranch for Sale to Take Advantage of the U.S. Beef Shortage

If you were able to enjoy a top class steak during Independence Day, consider yourself one of the lucky few who can truly afford the luxury. According to a report from WICS ABC 20, the price for U.S. beef has ballooned over the past few weeks.

Beef Prices

“The United States Department of Agriculture predicts beef prices to shoot up nearly seven percent this year. Restaurant owners paying record prices for beef, are struggling to make a profit.

The cost has jumped 16 percent in the last year, according to the Bureau of Labor Statistics.

And unfortunately, it doesn’t look like the price for beef will come down soon. Experts tell us prices could go down a bit after the Fourth of July holiday, but it could be another two years before the beef market is steady again.”

Although the article chalks up the rising cost of beef to the holiday festivities, one holiday alone could not have been solely responsible for such a spike in price. Instead, it appears that an increase in international demand for U.S. beef, since the lifting or easing of trade restrictions from countries like Hong Kong, are significant factors as well. Therefore, more stock is likely being exported to meet international demand.

A knee-jerk reaction to this market development would be to start a beef ranch. However, savvy investors know that the root of the problem is in establishing a sustainable supply. As such, purchasing a ranch for sale to start a cattle breeding operation is the more sustainable option.

If you are interested in doing so, you’ll need to locate the right ranch first. Luckily, respected ranch brokerages like Mirr Ranch Group have several breathtaking ranches for sale in several states. A ranch broker can help you find a property that is best suited for raising and breeding cattle.

Once you’ve located the perfect ranch, you’ll need to choose cattle breeds that neighboring beef ranches are likely to use for breeding calves. Some of the more popular breeds include Hereford, Charolais, and Limousin. If you wish to choose a different breed, pay close attention to the calving rate, growth rate, and grazing to body weight ratio of the breed that has caught your eye.

Establishing a cattle breeding ranch is no easy feat, especially for people who have no experience. You may want to consult several experts beforehand. By going about your new operation strategically, you can take advantage of a market that is sure to soar in the coming years.

(Source: Beef Prices Continue to Skyrocket; WICS ABC 20; June 30, 2014)

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Posted on July 14, 2014, in Industry News. Bookmark the permalink. Comments Off on Purchase a Ranch for Sale to Take Advantage of the U.S. Beef Shortage.

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