Just as egg prices come down, the cost of beef has risen sharply over the past year to reach all-time highs in 2025. Here's a look at why beef is the latest item driving grocery bills higher.
The Details: The average price for a pound of ground beef climbed to $6.12 in June, up nearly 12% from a year ago and marking the first time ground beef has climbed above $6 per pound since recordkeeping began. Steaks averaged $11.49 per pound, also up by around 8% to 12% depending on the cut.
Where's The Beef?
Some of the key drivers for soaring beef prices are shrinking cattle herds, drought conditions, costly feed and rising interest rates.
- The total U.S. cattle inventory is at its lowest since 1951, down about 8% from 2019 to 2025, and now stands near 86.7 million heads, according to SupplyChainBrain.
- Persistent droughts have reduced pastures, sending feed prices and production costs higher.
- The U.S. temporarily suspended cattle imports from Mexico in May due to a parasite outbreak and a 50% tariff on Brazilian beef imports, which starts Aug. 1, could further restrict supply and keep prices elevated.
- High interest rates and persistent economic challenges have raised costs throughout the supply chain.
One of the largest beef processors, Tyson Foods, Inc. (NYSE:TSN) CEO Donnie King said on the company's most recent earnings call that "beef is experiencing the most challenging market conditions we've ever seen."
Consumer demand remains strong as Americans continue to purchase beef, despite the record-high prices, according to the American Farm Bureau Federation.
However, companies like Hormel Foods Corp. (NYSE:HRL) could benefit from increased pork and chicken sales if American consumers make a turn away from beef.
Alternative protein companies such as Beyond Meat, Inc. (NASDAQ:BYND) and Impossible Foods could see indirect benefits from the high cost of beef if consumers look for other substitutes.
What's Ahead: Experts warn that this could be just the beginning of a lengthy period of tight supply and elevated beef prices.
Patrick Montgomery, CEO of the Kansas City Cattle Company, told Axios that the latest price increases were “just the tip of the iceberg.”
“Prices for beef will continue to be tumultuous for the next two to four years,” Montgomery added.
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