The average price tag for a pound of ground beef hit $6.12 in June
Grilling season could burn a hole in your pocket as beef prices in the US are at record highs. The average price tag for a pound of ground beef hit $6.12 in June, up nearly 12% from 2024.
Steaks also climbed 8% to $11.49 per pound.
Why are prices rising?
Beef prices have been steadily increasing over the past two decades and a variety of factors have contributed to it.
Shrinking cattle supply
As of January, the US had just 86.7 million cows, the lowest since 1951 and 8% below the 2019 peak.
Droughts, high feed costs, and cattle now selling for over $230 per hundredweight are driving ranchers to sell their female cows to slaughter instead of breeding them.
Agricultural economists point out that it is harder for young farmers to build their herd when borrowing costs and cattle prices remain high.
Imports affected
In November 2024, the US temporarily stopped importing Mexican livestock due to a flesh-eating parasite outbreak in the country. The imports resumed in February, but the pause strained supplies, as Mexico accounts for 4% of US beef.
Additionally, President Donald Trump has threatened 50% tariffs on imports from Brazil starting in August. These countries heavily contribute to the 4 million pounds of beef America imports every year.
Interestingly, the soaring prices haven’t stopped Americans from buying beef, and the meat remains popular. However, there is no quick way to restock the shrinking supply. It takes at least two years to raise beef-ready cattle.
Experts warn that the supply and demand pressure won’t cool beef prices anytime soon.