Beef Prices Continue to Surge in the U.S.

It took several years to get here. It’s going to take several years to get out. Once you’re in this situation, there is nothing you can do to speed up the recovery.

Professor of agribusiness at Oklahoma State University, Derrell Peel, regarding the increased price of beef. The July Consumer Price Index report found that beef prices have increased 11.3% since last year. However, figures indicate Americans have not cut back on beef consumption.

Why It Matters: One of the main reasons for surging prices stems from a 2022 drought in three major beef producing states — Texas, Oklahoma and Nebraska — leading to smaller calf populations in subsequent years. Additionally, U.S. tariffs can affect prices, especially the recent high tariffs on Brazil, which has exported more beef to the U.S. over the past year. Mexico has also faced spread of a deadly pest among its livestock, which means the USDA has prohibited livestock trade and has invested in stopping any spread into the U.S.

Something To Consider: “Cattle volumes always cycle, rising for about five years before falling for another five. But the most recent downturn proved particularly severe and prolonged.“ (Washington Post)

Learn More: Beef prices are soaring. Meat lovers aren’t deterred — yet. (The Washington Post Gift Link)