Where's the Beef?

Gary North

July 5, 2008

On May 10, I sent out my Tip of the Week on the increase in the price of beef this fall.

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The reason: rising grain prices. This is forcing beef producers, along with other livestock, to sell the animals early. This will increase the price of beef as the supplies fall later in the year.

On May 27, Bloomberg issued a report that confirmed my analysis.

//www.garynorth.com/snip/591.htm

I am again issuing the same tip. People sometimes need reminders. If you eat meat, then fill your freezer now. But half a side of beef or even more.

If you prefer grass-fed beef, do the same. No, grass-fed beef are not consuming more expensive grass. But the price of grass-fed beef is likely to rise.

Why? Because the supply of beef will be reduced. Demand will stay much the same until the rising price of meat forces a reduction in demand.

I don't want to be a nag, but if you are thinking about buying a side of beef, stop thinking and act.