The cattle herd in the U.S. may be the smallest since 1958, when McDonald’s Corp. had just 79 hamburger restaurants, signaling tighter beef supplies and higher costs for companies including Tyson Foods Inc.
Three years after the worst dry spell on record for Texas, fourth-generation rancher Stayton Weldon still doesn’t have enough water for his 300 cattle near Cuero, about 89 miles (143 kilometers) southeast of San Antonio. Dry grass on his 2,600 acres (1,052 hectares) has no nutrition. He has lost 22 cows and two bulls in the past year.
Texas cattle ranchers, the biggest suppliers in the world’s top beef-producing nation, will cull the most breeding cows ever this year as drought increases feed costs, driving livestock prices to a record.
A prolonged drought from Kansas to Texas probably forced U.S. ranchers to sell more cattle to feedlots last month, signaling increased supplies for meat processors including Tyson Foods Inc. and lower beef prices.