The drought that caused several Texas ranchers to sell off their herds in the past three years is also a culprit in the current surge in red meat prices.
According to several economists the prices are setting records. The demand for beef in Asia as well as increased feed prices -- as corn increasingly heads to ethanol refiners -- are also to blame for the current state of high prices.
American families are starting to change their habits as the price heads north of $5 per pound. Texas ranchers are looking at the same price and considering rebuilding their herds. Texas, once having the largest herds in the country, has waned as a result of the drought, with Nebraska beating it in one critical area "Cattle on Feed," or the number of cattle ready for slaughter.
How is the high price of beef going to affect the dinner table? Will Texas take advantage? Is this the new normal?
- David Anderson, professor of agricultural economics at Texas A&M.
*This is the second segment in the April 17 edition of The Source, which airs at 3 p.m. on KSTX 89.1 FM -- audio from this show will be posted by 5:30 p.m.