By HANA KIM
6 News Reporter
KNOXVILLE (WATE) - If you think beef prices are high now, brace yourself because they could climb even higher.
A cow is expected to auction off for about $1,500 Wednesday at Knoxville Livestock Center.
Jason Bailey is manager and cattle producer of the center. He says there is no shortage of cows on the local market, but with an extreme drought in Texas, farmers are selling off their herds there early and in a hurry.
Triple-digit temperatures are drying up crops, along with the cattle supply.
Texas' dry plight could create a nationwide problem.
"Right now there is an oversupply. Cow prices are still good right now, but we could see that as much as 50 percent higher this time next year," said Bailey.
Bailey predicts prices will skyrocket once the supply is depleted.
"I think on the consumer end we will see record prices when it comes to beef in the stores," said Bailey.
So if you don't raise your own cattle, Bailey says stockpiling beef in the freezer may be a cash-saver.
In a matter of months, a $1,500 cow could cost $2,000.
People in the cattle industry say it's a double-edged sword. Consumers will be hurting, but farmers in areas not affected by drought could profit if prices skyrocket.
There is no shortage of cows on the local market.
"We could see that as much as 50 percent higher this time next year," said Jason Bailey.
