Why beef prices are higher than ever (and shoppers are finally resisting)

"Why has the price gone up? It's the law of supply and demand. America's beef cattle herd is the smallest in 75 years, in part because of drought. But Americans' love of hamburgers and steaks has kept demand strong until recently. In July, the U.S. Department of Agriculture continued to record a shrinking number of U.S. cattle and calves, forecasting that beef production would decline 4% over this year and another 2% in 2026."

"Ranching in America can be a topsy-turvy, break-even or money-losing business, but not right now. "We've kind of hit this perfect storm," says Brady Blackett, a third-generation Angus cattle producer in Utah. "There's healthy competition for the cattle, and there's not enough of them to fulfill the demand. And so it has driven prices to historic highs." It's a sharp turnaround."

Ground beef prices have risen about 51% since February 2020. The U.S. beef cattle herd is the smallest in 75 years, partly because of drought, reducing domestic supply. Demand for hamburgers and steaks remained strong, keeping upward pressure on prices. The U.S. Department of Agriculture forecasts beef production will fall about 4% this year and another 2% in 2026. Foreign imports are also down due to tariffs on Brazilian beef and restrictions related to screwworm fears. Producers faced higher input costs and earlier herd reductions during drought, which contributed to historic price increases.

Read at www.npr.org