Bank of America analysts spoke with Oklahoma State University agricultural economist Derrell Peel, who offered new insight into the US cattle cycle. His key takeaway: the herd-rebuilding phase may not meaningfully begin to turn until near the end of the decade, suggesting elevated beef prices at the supermarket are here to stay.

The most important issue in the beef industry is when the cattle cycle will turn. The US beef cow herd is the smallest since 1961, while the 2025 calf crop is the smallest since 1941. Beef production is expected to decline by 4.5% to 5% in 2026 and continue falling through at least 2027, despite heavier carcass weights partially offsetting lower slaughter volumes.

Peel explained to Sara Senatore, a BofA Securities research analyst covering restaurants, protein processors, and food and beverage, that the beef industry has not yet seen the tightest supplies because meaningful heifer retention has only just begun.

He added that if ranchers begin saving heifer calves in 2026, those animals would be bred in 2027, calve in 2028, and only begin adding to supply in 2029 or 2030.

Peel explained more about when the cattle rebuilding cycle could turn: 

The warning that the cattle cycle is still several years from a meaningful turn builds on our prior note that there are "no quick fixes" for historically tight supplies.

The structural fix is herd rebuilding, and Peel's timeline points to meaningful relief in beef production closer to 2029-2030, not anytime soon.

In other words, high supermarket beef prices are not a temporary squeeze. This is a new reality folks must understand: a broken cattle cycle that will take years to repair - and quality might lack... 

That's why locking in high-quality beef now matters. While the Trump administration searches for ways to bring prices down (see here) and the industry waits years for herds to rebuild, readers can skip the junk at the supermarket and buy directly from our ranchers. 

Buy here.