It’s prime grilling season and the steaks have never been higher. The average price of an uncooked beef steak jumped 8% over the past year, reaching a record $11.49 per pound in the US, according to federal government data.
Ground beef is sky-high, too, spiking nearly 12% to a record $6.12 per pound. Now more than ever, if you want to make a good burger, you’d better have some cheddar.
What’s the beef?
Beef prices have actually been trending upward for years because US cattle inventory is down. It’s 8% smaller than it was in 2019 and at its lowest level in more than 70 years. According to the Associated Press:
- Years of drought have made it more expensive for ranchers to feed their cattle.
- Cattle prices are high, so ranchers are cashing in while they can, selling their cows instead of using them to breed more calves.
- If ranchers do want to grow their herds, it’s hard to come up with tens of thousands of dollars to make that investment, especially when borrowing costs are high.
What about imports? There are challenges there, too. The US government suspended Mexican cattle imports to ensure a flesh-eating fly, the New World screwworm, stays far away from US farms (and our nightmares).
Beef prices could also start feeling the heat from President Trump’s trade policy. According to Axios, about 23% of US beef imports come from Brazil, where Trump has announced a 50% tariff to take effect on August 1. Brazilian meatpackers are already reconsidering future shipments, Reuters reported.
Big picture: “Prices for beef will continue to be tumultuous for the next two to four years,” the CEO of KC Cattle Company told Axios. To prepare, Walmart opened its first beef processing facility last month to have more control over the supply chain.—BC
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