Why your grocery bill in Virginia might keep climbing
Why it matters: The steep price tag might squeeze grocery budgets for the next two to four years, says Patrick Montgomery, CEO and cofounder of Missouri-based KC Cattle Company.
These costs are "just the tip of the iceberg," Montgomery tells Axios.
By the numbers: Ground beef — the second-most consumed meat nationwide — averaged $6.12 a pound in June, up nearly 12% from a year ago, according to federal data released last week.
It's the first time that ground beef has been above $6 since the Consumer Price Index (CPI) data collection began in the 1980s, per the Joint Economic Committee's minority arm.
Meanwhile, Virginians are eating more beef now (59.1 pounds) than they were last year (58.9).
Zoom out: The beef supply chain is being strained by a multi-year drought and high consumer demand while farmers face higher production expenses.
Pittsylvania County cow producer Hunter Johnson told WSET the costs of expenses like pesticides and fertilizers have increased 30-35%.
And the Virginia Cooperative Commission says cattle supply is the lowest it's been since 2014.
The other side: The spike in prices for "conventional sources of beef" could be a good thing for local butcher shops like Belmont Butchery, owner Tanya Cauthen tells Axios.
"It actually makes local meat more competitive as a result because there's less of a price difference," she says.
Yes, but: Cauthen has noticed that customers are buying smaller portions and asking more about alternative or cheaper steak cuts.
Her pro tip on maintaining a family food budget: "Talk to your butcher about what you're trying to make, because they will probably have a suggestion that you would've never thought of."
What we're watching: Whether the incoming U.S. tariff on Brazil, which accounts for nearly a quarter of all U.S. beef imports, will have an impact on Richmond-area restaurants.
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