Beef prices have jumped 9% since the start of 2025, reaching an all-time high of $9.26 per pound at retailers, according to the U.S. Department of Agriculture (USDA). This price surge is attributed to growing demand and shrinking supply.
In June, the price of beef far exceeded the average food-at-home increase, with steak prices soaring by 12.4% and ground beef by 10.3% year-over-year, according to the Labor Department’s consumer price index (CPI). As a result, consumers are feeling the pinch at the grocery store.
“Beef’s Price Surge Is a Different Beast”
Michael Swanson, chief agriculture economist at Wells Fargo Agri-Food Institute, drew parallels between the beef price spike and the earlier surge in egg prices.
However, he explained that unlike eggs, beef’s fragmented industry makes price corrections more complex.
“The egg industry’s structure allowed for quicker price shifts, but beef’s recovery is slower and less predictable,” Swanson noted.
The demand for beef continues to outpace supply, and producers are grappling with high costs for feed, labor, and energy.
Bernt Nelson, economist at the American Farm Bureau Federation, pointed out in a May report that U.S. beef demand is crucial in maintaining profit margins for cattle farmers.
“With tight supplies, the key factor is demand,” Nelson said. “If it weakens, cattle prices will drop, but it would also hinder the expansion of the U.S. cattle herd.”
Industry Leaders Raise Alarms
Tyson Foods CEO Donnie King stressed that the beef market is facing its toughest conditions ever. The company reported a sharp decline in the number of cows being sent to slaughter, down by nearly 18%.
Tyson also observed fewer young female cows being raised for meat as farmers hold on to them to rebuild their herds, with the number of heifers down 4% compared to last year.
Omaha Steaks CEO Nate Rempe also highlighted concerns about beef supply. “The number of cattle in the U.S. is at its lowest since the 1950s,” Rempe told FOX Business, noting that strong demand is continuing to drive prices upward.
Retailers, including Walmart, are closely monitoring beef prices, which have already impacted their forecasts for the 2025 fiscal year.
Walmart CFO John David Rainey confirmed that food prices remain slightly inflationary, with beef and other meats contributing to the increase.
Meanwhile, Wendy’s CEO Kirk Tanner echoed similar concerns, pointing out that rising beef prices are a key driver of food inflation.
In a market where demand still reigns, the price of beef is likely to remain volatile, as supply struggles to catch up.
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