Beef Prices Soar to Record Highs in June

By Ryan Hanrahan

Newsweek’s Hugh Cameron reported that “ground beef prices across the U.S. continue to reach new highs, driven by shrinking cattle herds, with looming import restrictions threatening to push costs even higher.”

“According to government data released last week, the average price of a pound of 100% ground beef rose to $6.12 last month, up from $5.98 in May and $5.47 in June 2024,” Cameron reported. “Experts have said this trend shows no signs of slowing, meaning there may be upward pressure on prices through 2026 and beyond.”

“The rising cost of staple agricultural products such as beef and eggs has further strained household budgets in 2025, as well as the budgets of businesses reliant on the sales of these items,” Cameron reported. “In addition to having an outsize effect on inflation data, summer price increases are hitting during the peak months—when beef sales traditionally peak because of outdoor gatherings—further underscoring the growing issue.”

“June marked the first month since data collection began in the 1980s that ground beef prices rose above $6 per pound,” Cameron reported. “According to the Consumer Price Index released by the Bureau of Labor Statistics on July 15, steaks saw the largest increase among beef products in June—up 12.4% since June 2024 at an unadjusted rate, followed by ground beef at 10.3%. This compares to a 0.5% increase for pork products and 3.9% for chicken.”

Why Have Prices Increased?

Axios’ Kelly Tyko reported that “America’s beef supply chain is being strained from multiple angles: climate, policy and economics. A multi-year drought shrunk cattle herds, and global imports are under threat — but consumer demand remains strong.”

“We’re dealing with lower supplies of beef, and that’s what’s really driving up our prices of beef right now,’ Courtney Schmidt, sector manager at Wells Fargo’s Agri-Food Institute, tells Axios, noting that it is taking a long time for herds to recover from the 2021-2022 drought,” Tyko reported. “The number of farms in the U.S., including ranches, declined by 7% or 141,733 between 2017 and 2022, according to the latest USDA Census of Agriculture report, published in February 2024. The American Farm Bureau Federation cites high production expenses and foreign competition as two reasons for the closings.”

In addition, “in May, the U.S. suspended live cattle imports from Mexico because of the New World Screwworm, a parasitic flesh-eating maggot,” Tyko reported. “Andrew Coppin, CEO and co-founder of Ranchbot, tells Axios the temporary banning of the import of Mexican cattle added to this price pressure.”

Moving forward, “a new 50% U.S. tariff on Brazilian imports starting Aug. 1 could further disrupt global supply chains,” Tyko reported. “Brazil accounts for around 23% of all U.S. beef imports. Brazilian meatpackers are reconsidering future beef shipments to the U.S. because of the tariff, Reuters reported Tuesday.”

Prices Likely to Remain High for Foreseeable Future

The Associated Press’ Josh Funk reported that “it’s the height of grilling season and demand in the U.S. for beef remains strong, which Kansas State agricultural economist Glynn Tonsor said will help keep prices higher.”

“If prices remain this high, shoppers will likely start to buy more hamburger meat and fewer steaks, but that doesn’t appear to be happening broadly yet — and people also don’t seem to be buying chicken or pork instead of beef,” Funk reported. “Nelson said that recently the drought has eased — allowing pasture conditions to improve — and grain prices are down thanks to the drop in export demand for corn because of the tariffs. Those factors, combined with the high cattle prices might persuade more ranchers to keep their cows and breed them to expand the size of their herds.”

“Even if ranchers decided to raise more cattle to help replace those imports, it would take at least two years to breed and raise them,” Funk reported. “And it wouldn’t be clear if that is happening until later this fall when ranchers typically make those decisions. ‘We’ve still got a lot of barriers in the way to grow this herd,’ Nelson said. Just consider that a young farmer who wants to add 25 bred heifers to his herd has to be prepared to spend more than $100,000 at auction at a time when borrowing costs remain high.”

Beef Prices Soar to Record Highs in June was originally published by Farmdoc.