The US cattle herd is not expanding despite record high calf prices and strong demand, creating pressure on the leather and hide industry due to lower hide availability and rising raw material costs.

Severe drought conditions across the Central Plains and other major cattle-producing regions have forced producers to sell cattle instead of keeping them for breeding, says LHCA

Texas A&M livestock economist David Anderson said the ongoing drought has damaged pasture conditions and reduced forage availability, making it difficult for producers to rebuild herd numbers.

He warned that the impact of the drought will continue for years even if weather conditions improve in the coming months.

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According to Anderson, biological limitations and growing risk aversion among producers will slow down the recovery of the national cattle herd.

For members of the leather and hide industry, the shrinking cattle supply is creating continued pressure on hide availability while also increasing raw material costs.

The Leather and Hide Council of America (LHCA) said it will continue monitoring cattle herd trends and update members on developments affecting supply chain planning.