×

US beef prices continue their decades-long climb

OMAHA, Neb. — Anyone firing up the grill this summer already knows hamburger patties and steaks are expensive, but the latest numbers show prices have climbed to record highs.

And experts say consumers shouldn’t expect much relief soon either.

The average price of a pound of ground beef rose to $6.12 in June, up nearly 12% from a year ago, according to U.S. government data. The average price of all uncooked beef steaks rose 8% to $11.49 per pound.

But this is not a recent phenomenon. Beef prices have been steadily rising over the past 20 years because the supply of cattle remains tight while beef remains popular.

In fact, the U.S. cattle herd has been steadily shrinking for decades. As of Jan. 1, the U.S. had

86.7 million cattle and calves, down 8% from the most recent peak in 2019. That is the lowest number of cattle since 1951, according to the U.S. Department of Agriculture.

Smaller herd

The American beef industry has gotten better at breeding larger animals, so ranchers can provide the same amount of beef with fewer cattle, said David Anderson, a livestock economist at Texas A&M.

Then in 2020, a three-year drought began that dried out pastures and raised the cost of feed for cattle, according to the American Farm Bureau. Drought has continued to be a problem across the West since then, and the price of feed has put more pressure on ranchers who already operate on slim profit margins.

In response, many farmers slaughtered more female cattle than usual, which helped beef supplies in the short term but lowered the size of future herds. Lower cattle supplies has raised prices.

Disease dilemma

The emergence of a flesh-eating pest in cattle herds in Mexico has put extra pressure on supply because officials cut off all imports of cattle from south of the border last year. Some 4% of the cattle the U.S. feeds to slaughter for beef comes from Mexico.

The pest is the New World screwworm fly, and female flies lay eggs in wounds on warm-blooded animals. The larvae that hatch are unusual among flies for feeding on live flesh and fluids instead of dead material. American officials worry that if the fly reaches Texas, its flesh-eating maggots could cause large economic losses as they did decades ago before the U.S. eradicated the pest.

Tariff trouble

President Donald Trump’s tariffs have yet to have a major impact on beef prices but they could be another factor that drives prices higher because the U.S. imports more than

4 million pounds of beef every year.

If the tariffs remain in place long-term, meat processors will have to pay higher prices on imported lean beef. It wouldn’t be easy for U.S. producers to replace because the country’s system is geared toward producing fattier beef known for marbled steaks.

Newsletter

Today's breaking news and more in your inbox
I'm interested in (please check all that apply)(Required)
Are you a paying subscriber to the newspaper?(Required)