Why Beef Prices Are Higher Than Ever (and Shoppers Are Finally Resisting)

By Alina Selyukh

Ground beef prices have gone up 51% since February 2020, according to the Bureau of Labor Statistics.

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.

Meanwhile, foreign imports are also down. Brazilian beef faces a 76% tariff. Fears about the screwworm parasite have led the USDA to block livestock from crossing from Mexico to the U.S. to safeguard the nation's food supply.

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."