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Economic Times
24-07-2025
- Business
- Economic Times
After eggs, now ground beef prices are at record high, here's why, and is Trump behind the steep rise
TIL Creatives The cost of ground beef in the United States is beginning to make a dent in the wallets of Americans and weigh down their shopping baskets. The cost of ground beef in the United States is beginning to make a dent in the wallets of Americans and weigh down their shopping baskets. In June 2025, the prices of ground beef rose by 10.3% in comparison to the same time in 2024. It surpassed $6 per pound. Meanwhile, the price of steak increased by 12.4% within this period. Before the rise in ground beef prices, egg prices were hitting the roof. Earlier in 2025, egg prices more than doubled in price in April when compared to March 2024, according to TIME. The sharp rise was due to bird flu outbreaks on US farms, which led to over 23 million birds being culled. Meanwhile, in early July 2025, egg prices have fallen back down to $3.78 per dozen from $6.23 in April. Food prices as a whole have been on the rise by 2.7 percent over the last year. Over the past 12 months, food prices as a whole have only risen by 2.7%, so what is causing this sharp increase in the price of ground beef? Cattle herd sizes at record low Amid the prevailing high demand for ground beef products in the US, the supply has been a major issue. There have been only 87 million cattle and calves recorded across the country at the beginning of 2025, according to the American Farm Bureau Federation (AFBF). This signifies that cattle herd sizes are at the lowest in the country they have been for almost 75 years. According to AFBF economist Bernt Nelson, feed steer prices have hit record highs, prompting farmers to sell cattle for meat instead of breeding. Even with high prices, farmers still struggle to make a profit, so many might sell off their remaining cattle because of slim margins. One of the main high costs affecting sustainable profit for cattle ranchers is the price of feed, which ties back to adverse weather from climate change. Drought David Ortega, a food economist and professor at Michigan State University, said, 'One of the main drivers has been the effects of climate change on beef production in the U.S. This is something that doesn't cause prices to rise overnight, so there's a considerable lag involved,' according to TIME.A major drought hit the Great Plains states in 2022, forcing many cattle farms to sell their livestock. 'What that [drought] does is erase feed for producers. There's less forage availability, so they sell a lot of their animals because it becomes very costly to hold on to them,' Ortega further stated. A lot of the sold livestock, often slaughtered and turned into beef products, includes 'breeding stock,' meaning that in the long term, there is less capacity to breed new cows to keep up with consumer demand. Uncertainty due to Trump's tariffs Ortega has said that tariffs have started to play a key role in the rise of beef prices, triggering uncertainty and concerns pertaining to the future. One of the reasons behind the uncertainty is that despite a lot of domestic production, the US still imports a major amount of beef. Earlier in July 2025, President Donald Trump threatened to impose a 50% tariff against Brazil. 'If these do go into effect, or even higher tariffs [are implemented], then I think we're going to see a notable further increase on things like ground beef and hamburger meat,' Ortega said. Brazil is the world's largest exporter of beef. It witnessed an increase in sales of meat to the U.S. this year after a trade war between Washington, D.C., and Beijing escalated. In May, Brazilian exports to the U.S. rose by 20%, and current imports from the country are almost double what they were in June 2024, according to the USDA.
Yahoo
24-07-2025
- Business
- Yahoo
High beef prices will likely linger, even after cookout season ends
Beef prices are coming in hot this summer. Steak and ground beef prices just hit record highs, according to June inflation data from the Bureau of Labor Statistics, which has tracked beef prices going back to 1984. Still, demand has stayed strong. Beef is the second most-consumed meat in the U.S., after all, and summer barbecue season is a particularly popular time. 'Peak demand time for beef typically happens around the Fourth of July,' said Bernt Nelson, an agricultural economist at the American Farm Bureau Federation. 'Through the second half of the year, demand kind of slows down seasonally for beef.' That means prices could also come down a bit. But even after Americans put their grills away for the season, the U.S. beef industry will continue grappling with long-term supply issues. Cattle herds have been shrinking over the last few decades. They dropped another 1% from 2024 to 2025, according to the U.S. Department of Agriculture. The number of beef cows that have calved is also down 1%, reaching a new record low. That means the current cattle herd is the nation's smallest since 1951, according to the Farm Bureau. Climate issues have exacerbated the shortage. Agricultural experts say drought over the last few years in the Plains and Upper Midwest has dried up the supply of grass for cattle. It has forced farmers to reduce their flocks, and the cattle count still hasn't recovered. 'The drought conditions really placed a lot of stress on our farmers and their pastures that they rely on to help feed cattle,' Nelson said. 'When this happened, they placed high numbers of females on feed for market rather than holding them back to replace the herd. And so that led us to this slow but steady contraction in the cattle herd.' Import issues have also restricted the cattle supply. The U.S. government suspended cattle imports from Mexico in May due to the parasitic screwworm affecting cattle there. More challenges await. President Donald Trump's threatened 50% tariff on imports from Brazil, slated to start Aug. 1, could tighten supply even more. About 8% of U.S. beef is imported from places like Brazil, Argentina and Australia, said Michael Swanson, Wells Fargo's chief agricultural economist. With the looming tariffs, Brazilian meatpackers are rethinking exporting to the U.S., according to an industry lobby group. Ground beef is averaging $6.12 per pound, up 11.84% from a year ago, according to the BLS, meaning a 6-ounce hamburger patty could cost around 24 cents more now than last summer. Steak is averaging $11.49 a pound, up 8.05% from a year ago. All told, the Agriculture Department predicts beef and veal prices could rise 6.8% overall this year. It expects smaller price increases for pork and poultry. Companies, in turn, are flocking more to chicken, with fast-food chains like McDonald's, Wendy's and Chipotle all offering new chicken options. Tyson Foods, one of America's largest meat companies, has also recently launched new chicken items. 'When we've got an environment that is challenging in beef and you've got an environment where there's probably less availability of beef, it's helpful and certainly in the total complex to be able to manage that multi-protein, multichannel portfolio,' Tyson Foods Chief Financial Officer Curt Calaway said in a May presentation. Walmart is shifting its beef strategy, opening its first-ever owned and operated case-ready beef facility last month. The retail and grocery giant says the new facility will help it increase capacity and improve its supply chain, cutting costs and helping consumers get high-quality beef at low prices. While cattle farmers are trying to rebuild their herds, the recovery for the beef industry may take years, agricultural experts said. 'If I want to have more chickens, I just have to wait three to six months,' Swanson said. 'If I want to wait for more cattle, I gotta wait three to four years to get a lot more cattle.' This article was originally published on
NBC News
23-07-2025
- Business
- NBC News
High beef prices will likely linger, even after cookout season ends
Beef prices are coming in hot this summer. Steak and ground beef prices just hit record highs, according to June inflation data from the Bureau of Labor Statistics, which has tracked beef prices going back to 1984. Still, demand has stayed strong. Beef is the second most-consumed meat in the U.S., after all, and summer barbecue season is a particularly popular time. 'Peak demand time for beef typically happens around the Fourth of July,' said Bernt Nelson, an agricultural economist at the American Farm Bureau Federation. 'Through the second half of the year, demand kind of slows down seasonally for beef.' That means prices could also come down a bit. But even after Americans put their grills away for the season, the U.S. beef industry will continue grappling with long-term supply issues. Cattle herds have been shrinking over the last few decades. They dropped another 1% from 2024 to 2025, according to the U.S. Department of Agriculture. The number of beef cows that have calved is also down 1%, reaching a new record low. That means the current cattle herd is the nation's smallest since 1951, according to the Farm Bureau. Climate issues have exacerbated the shortage. Agricultural experts say drought over the last few years in the Plains and Upper Midwest has dried up the supply of grass for cattle. It has forced farmers to reduce their flocks, and the cattle count still hasn't recovered. 'The drought conditions really placed a lot of stress on our farmers and their pastures that they rely on to help feed cattle,' Nelson said. 'When this happened, they placed high numbers of females on feed for market rather than holding them back to replace the herd. And so that led us to this slow but steady contraction in the cattle herd.' Import issues have also restricted the cattle supply. The U.S. government suspended cattle imports from Mexico in May due to the parasitic screwworm affecting cattle there. More challenges await. President Donald Trump's threatened 50% tariff on imports from Brazil, slated to start Aug. 1, could tighten supply even more. About 8% of U.S. beef is imported from places like Brazil, Argentina and Australia, said Michael Swanson, Wells Fargo's chief agricultural economist. With the looming tariffs, Brazilian meatpackers are rethinking exporting to the U.S., according to an industry lobby group. Ground beef is averaging $6.12 per pound, up 11.84% from a year ago, according to the BLS, meaning a 6-ounce hamburger patty could cost around 24 cents more now than last summer. Steak is averaging $11.49 a pound, up 8.05% from a year ago. All told, the Agriculture Department predicts beef and veal prices could rise 6.8% overall this year. It expects smaller price increases for pork and poultry. Companies, in turn, are flocking more to chicken, with fast-food chains like McDonald's, Wendy's and Chipotle all offering new chicken options. Tyson Foods, one of America's largest meat companies, has also recently launched new chicken items. 'When we've got an environment that is challenging in beef and you've got an environment where there's probably less availability of beef, it's helpful and certainly in the total complex to be able to manage that multi-protein, multichannel portfolio,' Tyson Foods Chief Financial Officer Curt Calaway said in a May presentation. Walmart is shifting its beef strategy, opening its first-ever owned and operated case-ready beef facility last month. The retail and grocery giant says the new facility will help it increase capacity and improve its supply chain, cutting costs and helping consumers get high-quality beef at low prices. While cattle farmers are trying to rebuild their herds, the recovery for the beef industry may take years, agricultural experts said. 'If I want to have more chickens, I just have to wait three to six months,' Swanson said. 'If I want to wait for more cattle, I gotta wait three to four years to get a lot more cattle.'
The Independent
22-07-2025
- Business
- The Independent
Why are ground beef prices in the US increasing?
The cost of ground beef in the US has reached a record high, increasing by approximately 12 percent from June 2024 to June 2025. This surge, which sees prices rise from $5.47 to $6.12 per pound, challenges President Trump 's pledge to reduce grocery costs. Key factors contributing to the price hike include shrinking cattle herds, severe drought conditions, and an increase in beef imports. Experts note the beef market's complexity compared to other foodstuffs like eggs, with growing competition from countries such as Australia and Latin America. The American Farm Bureau Federation reports US cattle herd sizes are at a 74-year low, exacerbated by increased animal feed costs due to drought.
Miami Herald
27-06-2025
- Business
- Miami Herald
Fourth of July barbecues will cost more in California. Here's a breakdown
Fireworks aren't the only thing accompanying Californians' Fourth of July celebrations this year - higher grocery prices will as well. A California cookout for 10 guests will cost $90.06, compared with the national average of $70.92 and Western regional average of $73.50, according to the American Farm Bureau Federation's annual "marketbasket" survey. California-specific costs were included for the first time this year. The survey uses data collected by volunteer shoppers across the country, including Farm Bureau members and others, from stores in every state and Puerto Rico to give consumers a snapshot of food costs. This year's national average of $7.09 per person for a cookout, marks the second-highest cost since the survey began in 2013. California shoppers face steep premiums on cookout staples. Ground beef costs $14.33 for two pounds - $1 more than the national average. Chicken breasts run $12.48 for two pounds versus $7.79 nationally, while three pounds of pork chops cost $19.30, compared with $14.13 nationwide. Even basic items carry higher price tags in California. Hamburger buns cost $3.42 per package ($1.07 above average) and cheese runs $3.87 per pound (33 cents more). Fresh strawberries cost $6.14 for two pints versus $4.69 nationally, while two and a half pounds of homemade potato salad totals $4.92 compared with $3.54 elsewhere, the American Farm Bureau Federation said. Ice cream, cookies and lemonade also cost more in the Golden State. "Inflation and lower availability of some food items continue to keep prices stubbornly high for America's families," said Samantha Ayoub, associate economist at the American Farm Bureau Federation. Several factors account for the higher costs in California and nationwide. Trump administration tariffs on Mexico and Canada, two of the biggest suppliers of fresh produce, have increased import costs, which most retailers pass on to consumers. In March, Trump imposed a 25% tariff on most goods from Canada and Mexico. The American Farm Bureau Federation's assessment focuses mostly on food and drink items primarily grown and produced in the U.S., making it challenging to determine the full tariff impacts. However, steel and aluminum tariffs have increased costs for canned goods such as pork and beans. "Market uncertainty remains a challenge for many California producers, but we are hopeful the announcements of several recent trade deals is an indication that the administration is making progress on this front," Matthew Viohl, California Farm Bureau director of policy advocacy, said in an emailed statement. Reduced cattle availability and recovering chicken populations hit by avian flu also pushed prices higher. Additionally, ICE raids across California have created widespread fear among agricultural workers, disrupting farm operations and potentially threatening food production. Workforce disruptions could threaten the state's ability to supply healthy food, drive up grocery prices for all Americans and jeopardize California's position as the nation's agricultural leader, said Bryan Little, senior director of policy advocacy for the California Farm Bureau. Higher grocery costs, however, don't benefit farmers, who receive only 15% of each retail food dollar while facing rising expenses for labor, transportation and taxes. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
