Key facts
- U.S. beef prices are at record highs for summer cookouts.
- Cattle supplies are at their lowest levels in 75 years.
- Drought and wildfires have reduced cattle feed and pasture lands, forcing ranchers to reduce herds.
- Consumers are increasingly choosing chicken and pork over beef due to price increases.
- The average retail price for ground beef reached a record $8.62 per pound in May.
- President Donald Trump has encouraged beef imports and is investigating potential collusion among meatpackers.
U.S. consumers are facing persistently high beef prices for summer cookouts, with cattle supplies at a 75-year low due to drought and wildfires impacting pasture lands and feed costs. This has forced ranchers to reduce their herds, leading to tight supplies and elevated prices for steaks and hamburgers. As a result, some shoppers are turning to more affordable proteins like chicken and pork.
The Wells Fargo Agri-Food Institute estimates the cost of a summer barbecue for 10 people will increase by 2.4% from last year to $161, with hamburger beef alone rising 14%. The average retail price for a pound of lean ground beef reached a record $8.62 in May, up over 12% from the previous year, according to the U.S. Bureau of Labor Statistics.
Michael Swanson, Wells Fargo's chief agricultural economist, noted that there are no short-term solutions to increase domestic beef supply. President Donald Trump has encouraged low-tariff imports of Argentine beef to help cool prices and has directed the Department of Justice to investigate potential collusion among U.S. meatpackers. However, U.S. producers are currently unable to import Mexican cattle due to the spread of the New World screwworm parasite, exacerbating the supply-demand imbalance, according to Bill Bullard, CEO of R-CALF USA.
Brenda Masek, a cattle producer from Nebraska, stated she is not planning to expand her herd, prioritizing maintaining current numbers amidst ongoing dryness and hay shortages. Ranchers are sending more cattle to slaughter than for breeding, and it takes at least two years for new animals to be ready for processing, ensuring supplies remain tight and prices high.
A survey by the American Farm Bureau Federation found that two pounds of ground beef were 5.5% more expensive than last year at $14.06. In comparison, two pounds of chicken breasts cost $8.06, and three pounds of pork chops cost $14.79.