The price of beef has risen significantly following a harsh winter in the US and suppliers cutting back production due to the recession.

The US Department of Agriculture said global production of beef was set to fall for the third consecutive year.

Cattle in the US failed to gain weight due to the harsh conditions, while the country’s beef herd is now at its smallest since 1963, consultancy CattleFax said.

Cattle futures have risen by 16% on the GSCI commodities index, according to the Financial Times.

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