The U.S. cull cow market has soared in 2025. Prices for boning cows in Kentucky set an all-time monthly high in June-and July may break that record again. Specifically, June prices were 16% higher than in 2024 and 62% above 2023 levels, signaling a nationwide trend of elevated values for slaughter cows.

Beef Cow Slaughter Plunges

The core driver behind these record prices is a dramatic drop in beef cow slaughter. As of late July, beef cow slaughter is down 17% year-to-date compared to 2024. If this trend holds, 2025 could close with over 450,000 fewer cows culled than the prior year.

This follows three years of heavy culling from 2021-2023, meaning many low-performing animals have already exited the herd. Combined with today's strong calf market, producers are choosing to retain cows longer, further tightening supply.

Dairy cow slaughter is also down 7% year-to-date, contributing additional pressure on overall cull supply.

Demand for Ground Beef Remains Strong

Consumer demand for beef-particularly ground beef, which is heavily sourced from cull cows-remains a major market force. Despite elevated retail prices, ground beef remains a preferred option for value-conscious consumers, boosting demand for lean trim.

The decline in cull cow slaughter comes just as this demand rises, particularly as retail shoppers shift away from premium cuts toward lower-priced beef products.

Lean Trim Demand Accelerates

Another overlooked yet impactful factor is the rise in carcass quality grades. Over the past several years, improved feeding programs and heavier slaughter weights have pushed more carcasses into Prime-grade territory.

In 2024, 10.6% of fed cattle graded Prime. In 2025, that figure has risen to 11.8%, increasing marbling and fat content. This shift requires lean trim for blending, and cull cows are a key source of that trim.

Market Outlook

With limited slaughter, strong consumption, and shifting carcass composition, the cull cow market remains exceptionally firm. Unless slaughter volumes rebound or demand wanes-both unlikely in the short term-current price strength is expected to persist into the fall.

This dynamic environment calls for close monitoring by cow-calf operators, processors, and retailers alike. With tight supplies and strong pricing incentives, early marketing and herd retention strategies will be critical for capitalizing on this unique cycle.