Record High Cull Cow Prices: What Does It Mean for the Beef Market?

NASHVILLE, TN – The cattle industry is witnessing unprecedented price increases for cull cows, driven by tight supply conditions and robust demand for ground beef. Last week, the national dressed price for 85 percent lean cull cows broke through the $300 per hundredweight (CWT) barrier for the first time in history. In Southeast auctions, prices are ranging between $160 to $190 per CWT, reflecting local market dynamics.

Retail Ground Beef Prices at an All-Time High

According to USDA data, average retail prices for ground beef reached an astounding $6 per pound in June, officially marking another record. This surge in prices is largely attributable to a significant reduction in the supply of 85 percent lean trim, which primarily comes from cull cows and imports, blended with fattier fed cattle trim to produce ground beef.

Impact of Import Tariffs

This year, beef imports surged, particularly from Brazil. However, the U.S. government recently raised tariffs on Brazilian beef to an unprecedented 76 percent, which will likely curtail shipments into the United States. This reduction in imports could pressure the domestic market to fill the gap, subsequently driving cull cow values even higher.

Producers at a Crossroads

Producers are now faced with a critical decision: should they capitalize on the historically high cull prices or retain their cows for future calf production? The surge in slaughter rates could potentially slow the process of herd rebuilding, extending into 2026, which adds another layer of complexity to the market outlook.

As the landscape for cattle pricing and beef demand continues to evolve, stakeholders must analyze their strategies carefully to navigate these challenging yet opportunistic times in the cattle market.