By Scout Nelson
Feeder steer prices in Nebraska have reached record highs in April 2025, with recent prices near $400/cwt.–nearly $90/cwt. higher than last year and $150/cwt. above the five-year average.
This sharp rise is largely due to a declining cattle supply. Nebraska’s 2024 calf crop was just 1.51 million head–down 16% from 2018 and the smallest crop in at least 35 years.
Another key factor is resilient consumer demand for beef. Despite rising prices, people are still choosing to buy beef. An index from the Livestock Market Information Center (LMIC) measuring beef demand shows demand reached its highest level in 2023, with a record score of 128.
“The U.S. beef industry experienced higher per capita consumption AND higher inflation-adjusted retail prices clearing the market. That combination clearly signals positive domestic beef demand growth,” said Kansas State University agricultural economist Glynn Tonsor.
However, demand could weaken if economic conditions decline. Research from Tonsor and colleagues has shown that beef demand rises with consumer spending–by about 0.8% for every 1% increase in expenditures.
Despite economic concerns, consumers are still spending. The University of Michigan's consumer sentiment index fell to 52.2 in April–its second-lowest point since 1952. Yet U.S. retail sales rose by 1.4% in March, suggesting continued purchasing activity.
Beef producers are watching closely. If financial worries start to limit spending, the whole beef supply chain–from ranchers to retailers–could feel the effects. Monitoring consumer sentiment is key for the months ahead.
Photo Credit - gettyimages-97
Categories: Nebraska, Business, Livestock, Beef Cattle