U.S. Ground Beef Prices Reach Record Highs Amid Shrinking Herds

Beef prices in the U.S. have surged to record highs, with ground beef averaging $6.12 per pound in June and steaks reaching $11.49 per pound, driven by shrinking cattle herds, drought conditions, and rising feed costs. The U.S. cattle population is at its lowest since 1951, exacerbated by prolonged droughts and costly feed, which have severely squeezed ranchers' profit margins despite soaring retail prices. Imported beef from countries like Argentina and Brazil now accounts for about 8% of U.S. consumption, but looming import restrictions and tariffs threaten to further constrain supply and raise prices. Experts warn that these price increases show no signs of slowing and may persist through 2026 and beyond, adding pressure to household budgets already strained by inflation and higher energy costs. Major retailers like Walmart are attempting to reduce supply chain costs by opening in-house beef processing facilities, but demand for beef remains strong, keeping prices elevated. Industry analysts emphasize that the complex interplay of climate, economic factors, and policy challenges continues to disrupt the beef supply chain, making relief for consumers unlikely in the near term.