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Growing fuel expenses could impact cattle prices and beef demand

Higher fuel prices continue to add pressure to the cattle business.  

Ag economist Charley Martinez, director of the King Ranch Institute for Ranch Management, says rising diesel costs are increasing expenses throughout the supply chain.  “We’re in an environment where a loaded truck mile is so expensive right now,” he says.  “And I think we’re starting to see some of that impact on cash pricing in certain areas, especially as we gear up for the fall run.” 

Jackie Moore is the owner of Joplin Regional Stockyards in Missouri. “Most of these trucks, we’re paying $5.25, $5.50 a mile,” he says.  “We went back down to $4.75. Now we’re back to that. So if you ship one 500 miles, that’s another $250 or $300 a load. So it has some impact on it.” 

He tells Brownfield as consumers continue to pay more at the pump, it results in less money to spend on items like beef.  “The demand’s been awful good for this beef for three or four or five years,” he says. “I think the demand’s still there. But when you take money out of their pockets and they have to buy some fuel with it and some different things, it has to have some sort of an impact on the demand of beef.” 

But, he says, “I don’t think we’ve exactly seen that yet.” 

According to AAA, the cost of diesel rose again last week to $5.43 per gallon, which is $1.71 higher than 2025 levels.  Regular gasoline was $4.08 per gallon, up $.92 from last year.