US Cattle Prices Take a Hit as Bird Flu Spooks Traders

Where’s the beef? In the discount aisle. 

Beef prices have taken a tumble as commodity traders anticipate US demand will weaken due to avian flu affecting the country’s cattle herd, the Financial Times reported.  

Case of the Flu

As of the end of April, the US Department of Agriculture reported finding the avian influenza strain, H5N1, in 34 herds of cattle in nine states. The virus doesn’t typically infect humans, and it has a difficult time spreading from person to person, but it can be quite deadly. The World Health Organization says 889 H5N1 infections in humans occurred from 2003 to 2024, and slightly more than half resulted in death. Between 2022 and 2024, only two people in the US have been infected and they both recovered, according to the USDA. 

Though the USDA has banned infected cattle from crossing state borders and says beef and dairy supplies are safe, concerns about a wider outbreak have stoked anxiety:

• Cattle futures have surged to record highs in recent months because of droughts contributing to the country’s smallest herd since the 1950s. But live cattle futures traded on the Chicago Mercantile Exchange fell more than 6% in just one day this week.
• StoneX economist Arlan Suderman told the FT. “Perception is reality when it comes to food in the consumers’ eyes, obviously. If they perceive a problem, whether there’s a problem or not, there’s a problem.”

Meanwhile, more than 16,000 pounds of ground beef sold to Walmart was recalled this week because of E. coli contamination.

Don’t Have a Cow, Man: After chicken, beef is the second-most consumed meat in the US at roughly 30 billion pounds per year. But its popularity isn’t as widespread as you would think, with just 12% of the population accounting for half of all beef consumption on a given day, according to a 2023 study published in the journal Nutrients. And most is eaten by older men and teenage boys. So, guys, some red meat can be good for a balanced diet, but you shouldn’t eat the whole cow.