RETAIL beef prices hit new record highs for the second month in a row. As expected, prices soared to new record highs in August and look like continuing to rise this month. USDA’s Choice beef price averaged $9.85 per lb, up $0.16 per lb from July and up $1.33 per lb or 15.6 % from August last year. USDA’s All Fresh price averaged $9.18 per lb, up $0.28 per lb from July and up $1.02 per lb or 12.5% from last year. Middle to high income consumers are supporting the record high beef prices as they remain comfortable in buying high quality beef at record high prices, say analysts. Conversely, lower income consumers are likely buying less beef and are buying more pork and chicken because of their much lower prices. USDA’s retail pork price in August averaged $5.01 per lb, the same as in July. It was up only two cents from August last year. Chicken prices averaged $2.08 per lb in August, also the same as in July. The price though was up nine cents or 4.5% from August last year.
Maintaining positive beef demand going forward will remain the greatest challenge facing the industry, says Andrew Gottschalk, HedgersEdge.com. Retailers will continue to advance their average beef prices, reflective of record high fed cattle prices made during the current cyclical advance. Consumers will determine if those increases can be seen as sustaining the value they currently find in beef purchases. Meanwhile, a reduction in weekly harvest levels may be necessary going forward to maintain beef cutout values anywhere near current values, he says. His remarks came after the daily Choice and Select cutout lost $5.91 per lb and $5.63 per lb, respectively, last Tuesday. The cutouts fell sharply again Wednesday and Thursday.
Live Cattle Prices Fall Again
Cash live cattle prices meanwhile decline for the third week in a row. The week before last saw USDA’s 5-area steer price average $239.33 per cwt live or $376.15 per cwt dressed. The live price was down $3.22 per cwt from the previous week, while the dressed price was down $7.00 per cwt from the prior week. The cash trade last week was again slow to develop. Virtually the only trade through Wednesday was in Iowa-Minnesota and Texas, with 1193 head selling up north at $237 per cwt live and 1365 head selling down south at $239 per cwt live. A light to moderate trade occurred Thursday morning, with cattle up north selling at $236-237 per cwt live or $370 per cwt dressed. Cattle sold down south at $240 per cwt live, confirming the start of a premium there.
Boxed beef cutout values also declined the week before and did so again last week. The national weekly cutout averaged $404.37 per cwt, down $4.83 per cwt from the week before. The Choice cutout averaged $402.71, down $6.83 per cwt, while the Select cutout averaged $380.60, down $4.71 per cwt. Formula-priced sales accounted for 57.3% of the total volume of 6793 loads. Spot market sales accounted for 30.0%, forward sales accounted for 12.8% and export sales accounted for 10.1%. The Choice cutout the first four days of last week declined by $14.23 per cwt to $385.81 per cwt while the Select cutout declined by $17.13 per cwt to $361.31.
Carcass weights in the latest reported week ended September 6 were higher than the week before. Steer weights averaged 958 lbs, up 5 lbs on the prior week and up 18 lbs on the same week last year. Heifer weights averaged 866 lbs, up 1 lb from the week before and up 23 lbs from last year. Overall weights averaged 878 lbs, up 4 lbs from the week before and up 18 lbs from last year. This was the equivalent of adding 10,335 head to that week’s slaughter total of 566,581 head, says HedgersEdge.com.
AFN ACQUIRES ORB
AMERICAN Farmers Network (AFN), a leading grass-fed beef supplier, acquires Open Range Beef (ORB), a beef processor based in Gordon, Neb., which AFN says is known for its product quality, integrity and strong supplier partnerships. ORB’s culture of quality aligns perfectly with AFN’s model, says Sanin Mirvic, AFN’s founder and chairman. The acquisition deepens AFN’s capacity, extends its reach, and most importantly, cements AFN’s position as the clear category leader in domestic grass-fed and organic beef. AFN’s partners can plan confidently, knowing they have year-round, stateside processing at a meaningful scale, he says.
Terms of the transaction were not disclosed. The ORB plant has a daily processing capacity of 250 head and buys fed steers and heifers. With the acquisition, AFN continues to expand its vertically integrated footprint which links ranchers, fabrication, further processing and national distribution, it says. It also solidifies US-based processing capacity dedicated to grass-fed and organic programs for retail, foodservice, institutional and e-commerce partners. The new combined business will employ more than 500 people across two processing locations. AFN announced in July that it had acquired Intermountain Packing in Idaho Falls, Idaho. Its plant has a 500 head per day capacity.
The new addition to AFN’s business also looks at additional throughput, shift flexibility and geographic diversification to reduce bottlenecks and import exposure, while optimizing fill rates and lead times, says AFN. ORB’s team is energized to join AFN, says ORB CEO Marc Broccoli. Customers will keep the same trusted contacts and specs, now with the resources and scale of a national leader dedicated to grass-fed and organic lifestyle. Mirvic says ORB will retain its full workforce and maintain operating cadence during a phased integration, ensuring supply schedule and client service continuity. As part of growing its business, AFN will also invest in traceability, animal welfare and workplace safety. The new combined platform will focus on enhancements in audit readiness, labeling transparency and cold-chain performance, while exploring technology upgrades to improve yields, program verification and optimized client support, it says.
AFG SHOWS OFF NEW PLANT
AMERICAN Foods Group’s (AFG) America’s Heartland Packing shows off its new beef processing plant in Wright City, Mo., which began operations on April 10 in Wright City, Mo. AFG told media that the state-of-the-art facility was designed from the ground up with people and purpose, while focusing on employee well-being, community engagement, producer partnerships and environmental stewardship. The 775,000 square foot greenfield project was an $800M capital investment by AFG. At full capacity, the plant will process 2400 cattle per day but as of mid-September the plant was processing about 800 head per day.
Missouri is an ideal home for the new plant, with the state’s top-ranking cattle inventory, a strong producer base and a business-friendly climate, the company told Meat+Poultry. The plant features advanced automation and robotics designed to enhance safety and success. The innovations reduce the need for repetitive or strenuous tasks while improving overall throughput, product quality and employee satisfaction. Additional features of the plant include an on-site employment center, comprehensive training and safety programs and an employee meat store. At America’s Heartland Packing, its employees are at the heart of everything it does, says John Kelly, vice president of America’s Heartland Packing. From natural light-filled cafeterias and ergonomic workstations to climate-controlled barns and production floors, every detail is designed to create a safe, welcoming and rewarding workplace. This isn’t just a job, it’s a place where people can grow their careers, support their families and be part of something bigger, he says.
The company sources cattle from area producers of all sizes, it says. AFG’s network of cattle buyers bid on and buy cattle daily. Some of the incentives for producers include on-site cattle buyers and instant payments along with grade-yield live buying or hanging weight options. The facility also features modern cattle barns with climate control and fly-deterrent fans. America’s Heartland Packing was designated as the first-ever LEED-certified beef harvest facility.
MCDONALD’S MAKES NEW SUSTAINABILITY PLEDGE
MCDONALD’S, the world’s largest hamburger chain, makes a new commitment to beef sustainability. It announces its participation in a $200M initiative designed to demonstrate what it calls its continued commitment to responsible beef sourcing and stewardship of natural resources. Its U.S. division announces its largest investment in regenerative agriculture to date, with the launch of the Grassland Resilience and Conservation Initiative. It is partnering with the U.S. National Fish and Wildlife Foundation (NFWF), USDA’s Natural Resources Conservation Service and key McDonald’s U.S. suppliers.
The initiative will invest more than $200M over the next seven years to help promote and accelerate regenerative grazing practices, habitat restoration, water and wildlife conservation on cattle ranches spanning 4M acres of land across 38 states, says McDonald’s. Through the Grassland Resilience and Conservation Initiative, participating ranchers will have the opportunity to leverage tools and resources to help them improve wildlife habitats, conserve water and enhance soil health, it says.
McDonald’s also believes that this initiative will help boost its U.S. supply chain resilience, including by providing participating ranchers economic returns such as incentive payments, it says. McDonald’s U.S. suppliers, including Cargill, Golden State Foods, Lopez Foods, OSI and Coca-Cola, have elected to provide funds to NFWF alongside McDonald’s. NFWF will independently award competitive grants to organizations that will assist participating ranchers in adopting practices that advance wildlife conservation and regenerative agriculture. As a brand that serves more than 90% of Americans every year, McDonald’s recognizes the responsibility it has to help safeguard its food systems for long-term vitality, says Cesar Piña, McDonald’s Chief Supply Chain Officer for North America.
TYSON WILL HALT USE OF CORN SYRUP
TYSON Foods, one of America’s largest food manufacturers, continues to show leadership in making its products more “natural.” It adds High Fructose Corn Syrup (HFCS), Sucralose, BHA/BHT and Titanium Dioxide to the list of ingredients it will stop using in the production of branded products in the U.S. by the end of 2025. The brands include Tyson, Jimmy Dean, Hillshire Farm, Wright, State Fair, Aidells, ibp and others. The company noted that the ingredients being removed are approved and safe to use by the US Food and Drug Administration.
Tyson continuously reviews and assesses its product portfolio to ensure the highest quality products that meet the needs of consumers, says president and CEO Donnie King. Its decision to remove High Fructose Corn Syrup and other ingredients reflects its ongoing commitment to feeding the world like family, while preserving the taste, value and integrity that define its iconic brands, he says.
HFCS is caloric sweetener derived from corn, with 42% HFCS typically widely used as a sugar replacement in baked goods, snacks, bars and many other foods, says Tyson. 55% HFCS typically is used in beverages. Sucralose is a non-nutritive sweetener derived from sucrose (regular sugar) that is 600 times sweeter than sugar and is widely used in foods and beverages. It is mixed with dextrose and/or maltodextrin, both derived from corn, as bulking agents and is sold internationally by McNeil Nutritionals under the Splenda brand name. Tyson earlier this year removed petroleum-based synthetic dyes from its domestic branded products.
BEYOND DROPS MEAT: Beyond Meat, the company that makes faux meat products, drops “Meat” from its name, rebranding itself as simply “Beyond,” as the company shifts its focus from imitating animal proteins to developing plant-based proteins that stand on their own. The company’s new direction is centered on promoting plant-based proteins as functional foods rather than meat substitutes, says CEO Ethan Brown. The rebrand comes amid a period of financial challenges for Beyond, which has seen a decline in sales and a significant drop in market value. For the first quarter of 2025, the company reported a 9% year-on-year decrease in sales. Beyond’s stock price has dropped by approximately 95% since its 2019 IPO.
BRAZIL EXPORTS TO U.S. KEEP FALLING
BRAZIL’S beef exports to the U.S. will fall further in September from previous months, the head of local beef lobby Abiec says, because of higher tariffs imposed by President Donald Trump on goods from Brazil. Roberto Perosa last Wednesday said that beef exports to the U.S. should fall to about 7000 metric tons (mt) in September from around 9000 mt in August and 30,000 mt per month in the period preceding the tariffs, which came into force in August. The U.S. used to be the second largest buyer of beef from Brazil, the world’s largest exporter, only behind China. That changed last month when Mexico took over the position after Trump imposed a 50% levy on U.S. imports of several Brazilian goods. The fresh duties added to a 26.4% import tax faced by Brazilian beef that was shipped outside a previously established quota. The loss of Brazil’s second largest market makes a difference, Perosa said at an event hosted by a consultancy firm. But surprisingly, even with the 76.4% tariff, there are still exports to the U.S. because of the competitiveness Brazil has gained, he said.
NZ EXPECTS ANOTHER GOOD EXPORT YEAR
RED meat is one of New Zealand’s biggest export earners, so it expects export values to rise this financial year and be steady next year. Red meat prices are at record levels and are forecast to be strong in 2025-26 in the face of tariffs and added risks of volatility, says Beef+Lamb NZ’s New Season Outlook. Red meat prices are sitting at record levels and are expected to stay strong in 2025-26. Tight global supply is keeping demand high and that is flowing through to farm-gate returns. Even with tariffs being imposed by the U.S., New Zealand is still benefiting from robust international demand, particularly from the U.S., Europe and the UK. Consumers in those markets are paying more for beef and lamb despite the advent of higher inflation, says the outlook.
Export earnings for NZ’s core red meat exports in 2024-2025 are forecast to rise by NZ$1.4 billion to reach NZ$10.5 billion, even though volumes are down, says the outlook. Looking ahead to 2025-26, export returns are expected to hold steady, easing by just 0.5% compared to 2024-25. This stability reflects both the strength of global demand and the limited supply of sheep meat and beef products available globally. Lower forecast sheep meat exports by Australia in late 2025 are expected to further support sheep meat prices. Robust U.S. demand for red meat is creating opportunities for both New Zealand and Australia to play a key role in meeting supply needs. Brazil’s beef supply is also expected to remain tight. Additionally, a stronger New Zealand dollar is forecast, which would eat into export returns, says the outlook.
There are still significant risks to navigate, says the outlook. A 15% tariff now applies to imports into the U.S. of all New Zealand products. This represents an estimated cost of nearly NZ$500M on red meat sector export receipts in a season. The U.S. lamb industry continues to push strongly for higher tariffs on imported lamb. There also remains a risk of China applying tariffs on New Zealand beef as part of an ongoing global safeguards investigation. Farmland conversion to carbon forestry also continues to be a challenge. From 2017 to 2024, New Zealand lost an estimated NZ$1.9 billion in red meat export earnings with afforestation of sheep and beef farmland into carbon forestry, compared with carbon credit revenues of only NZ$218M. If afforestation trends continue, even with proposed legislative changes, by 2050 the country could forgo nearly NZ$36 billion in red meat exports, weakening NZ’s economic resilience, export earnings and workforce participation, it says.
Farm profitability turned a corner in 2024-25 following the toughest season since the Global Financial Crisis, when average Farm Profit Before Tax dropped to NZ$18,914 per farm and 40% of farms ran at a loss. In 2024-2025, profitability rebounded to NZ$138,600. The outlook for 2025-26 is bright. Average farm profit before tax is expected to increase to NZ$166,500 per farm. Lower interest costs, stronger livestock prices, better seasonal conditions and more fertilizer applied in 2024-25 are contributing to improved confidence and reinvestment. This recovery matters well beyond the farm gate. Red meat producers are forecast to generate NZ$7.2 billion of value on farm, spending around NZ$15.5M per day on goods and services, says the outlook.