Source: Drovers
Cattle prices have reached record highs in early 2025, driven by historically low herd numbers and strong beef demand. According to CattleFax projections at CattleCon in San Antonio, the U.S. cow herd is at its smallest in 65 years, with total inventory down to 86.7 million head. Slaughter levels are also decreasing, with a projected one million fewer head processed this year.
Despite high prices, herd expansion remains slow due to ongoing drought conditions and an aging producer base, many of whom are using profits to pay off debt instead of reinvesting in expansion. CattleFax forecasts continued record prices, with steer calves averaging $3.30–$3.40 per pound, up from $3.10 last year. Feeder steers (7.5-weight) are expected to average $270, compared to $248 in 2024. Fed steer prices are projected to rise to $198 per hundredweight, up from last year’s $186, as supply constraints keep the market tight.