Covid-19 Devastates Beef Market Prices
The Covid-19 virus has affected our lives in multiple ways. We have seen examples of this throughout our stores and restaurants. Our food prices are going up, and the beef price increase is affecting our generational ranchers.
Beef is a huge factor in our food systems and without it we would be extinguishing a history of iconic foods such as famous cuts of beef, hamburger and tacos, as well as putting many farmers out of business, but how far have our prices really been raised over these tough times?
This year average retail beef prices have gone up tremendously nearly 13%, each year grain prices are going up for ranchers by 88% and 1.3% per month. These generational ranchers in Humboldt County are lucky enough to be feeding our consumers all grass fed beef. This past year we have received 54.7 inches of rain, making the grass in the pastures grow tall to feed the cattle. Humboldt Grassfed Beef is the second most cattle producing operation that runs about 10 thousand head of cattle which includes steers and heifers. They also supply the sales of butcher cows and bulls which fund hamburgers for McDonalds. Being a only grass fed beef business gets hard for them sometimes because people are getting more picky about where their food is coming from.
However, even though they are grass fed beef does not mean that they are organic too. Clint Victorine, owner of Eel River Organic Beef, and known for running the largest commercial angus beef production operation in the US is proud to say that all of his cattle are Humboldt grass fed as well as being 100% certified organic. Being grass fed, neither of these beef operations have to worry about none to little of the grain prices, however, covid-19 has put a toll on shipping, packing, and seller/consumer prices that they are receiving back. In an interveiw with an huge impact within the livestock industry, Sarah Mora, Humboldt Grass fed Beef producer has quoted “Our generational farm really went down hill a couple years ago during the start of corona, we have not had to worry about grain prices going up but the fuel prices is getting for expensive from our shippers and the packers are affecting this by their lack of labor and buying during covid than consumer demand”. Because of all bills going up and because of that not enough packers and butchers are buying cattle which defaults the popular demand of high end parts of meat in the grocery stores. This is happening everywhere in the U.S. right now but because we live in such a rural area behind the redwood curtain the long haul of fuel and shipping prices impact all commercial cattle productions.
The Mora family are proud owners of Humboldt Grass Fed Beef, as well as owning Humboldt Auction Yard. They have also seen a struggle within the auction yard that specifically tracks back to the beef prices. Each year they run about 18 thousand head of cattle through the yard which is a total of butcher cows, steers, heifers etc. Humboldt Grass Fed Beef is liable to ship all of the cattle sold off of the property that is sold to buyers located out of Humboldt County. Though covid-19 has been a struggle within the process of the auction yard, the main packers are still buying. They have seen a flex of the cattle inspectors that go in intervals and inspect the property, they have seen this because some are more concerned about where the food is coming from and how the cattle are being treated.
Generational farmer Lee Mora, proud owner of Humboldt Grassfed Beef and Humboldt Auction Yard has said, “Small family ranchers are an important part of Humboldt Grassfed Beef’s success. Our partnership with these generational ranchers and independent markets make our product a truly Northern California experience that our customers can be proud to serve to their families.” All of our major commercial cattle ranchers in Humboldt County are all in partnership with each other and are making a profit off of each other's toil. The percentage of profit has fluctuated over the years but after covid both Humboldt Grass Fed and Eel River Organic Beef have seen a visible decrease of 3.8% of beef prices and production in Humboldt County. Thankfully Eel River Organic Beef has been able to save that tactic with Humboldts green pasture land. Clint Victorine, a known proffesional within the beef market price industry clearly stated, “Here at Eel River Organic Beef, our grass-fed, grass-finished cattle graze thousands of acres of lush green pastures year round. Our animals are always given plenty of open space, fresh air and clean water. We're a small family-run operation in Humboldt County, California. We're proud of this pristine country and work hard to do our part to ensure that everything we do benefits the environment as well as the health of our animals and our customers. Our beef is organic, delicious, naturally healthy and a product of the USA.” They own a little over 300,000 acres of land in Blocksburg California and 50,000 acres of land off the coastline where he raises his grass fed, organic beef. However, owning such a big operation you need to have ranch hands, with prices increasing for sellers they are not able to find enough people to work. Which means these generational ranches are staying within the family.
Humboldt Grassfed Beef and Eel River Organic Beef hope that once we get out of thai stage of covid-19 they are able to get back to the point where they are profiting business. With shipping and packing prices going through the roof for both consumers and sellers, these amazing cattle production businesses still thrive to seel the best of the best of beef production that they can to make all of their packers and consumers happy.