CattleFax: Demand drives cattle prices in the 2025 beef market

The U.S. cattle industry experienced record-high prices throughout 2024, driven primarily by strong demand for U.S. beef on a global level, CattleFax analyst Mike Murphy told attendees at the National Cattlemen’s Beef Association annual convention in San Antonio, Texas. This trend will likely continue in 2025, helped along by potentially tighter supplies as beef producers rebuild their herds and increased engagement in the cattle markets.

Murphy said beef demand relies on three main elements: exports, food service and the retail sector. In 2024, beef exports decreased in volume but increased $5 million in value from 2023 to 2024, and as Kevin Good shared in his presentation, retail demand is going strong. Food service bottomed out in July but managed to rebound by October. “That three-legged stool became more stable from a demand perspective, and that was really kind of what we saw from a price standpoint throughout the year, but certainly towards the tail end of 2024 and that's where we want to take this as we look at the price outlook in 2025.”