How Cattle Prices Are Determined

The price a rancher receives for live cattle is not the same thing as the retail price consumers see for packaged beef.

What affects cattle prices?

Prices can be influenced by cattle weight and class, sex, age, condition, genetics, expected performance, season, feed costs, available supply, buyer demand and broader cattle markets.

Price per pound does not tell the whole story

Livestock may be priced on a live-weight basis, while farm-direct beef may be priced using hanging weight, packaged weight, a flat share price or another method.

Those numbers should not be compared without understanding what is included.

Why do market prices move?

Cattle production takes time. Drought, feed availability, herd size, processing capacity, consumer demand and international trade can all affect supply and demand.

Understanding the different stages between cattle production and retail beef helps explain why farm-gate cattle prices and supermarket beef prices can behave differently.