July fourth cookouts face record beef prices amid shrinking cattle supply

Economic Times

03-07-2025

TIL Creatives Ground beef prices have reached a record high of $6.67 per pound, reflecting historic lows in U.S. cattle inventories and rising demand (AI generated image)
Ground beef prices have hit an all-time high, with retail costs for 2 pounds averaging $13.33, or $6.67 per pound, according to the American Farm Bureau Federation (AFBF). That's the highest price since the group began tracking in 2013. While consumers may find slight relief in the total cost of a traditional cookout, $70.92 for 10 people, or $7.09 per person, that figure is still 19% higher than it was five years ago. And beef is largely to blame.The spike in prices comes despite steady demand. 'Consumer demand for quality beef is not declining,' said Samantha Ayoub, associate economist at the AFBF and author of the new survey. 'If anything, it's proving to be incredibly resilient.'Cattle supply hits historic lows
The root of the price surge is a shrinking cattle supply. The U.S. Department of Agriculture (USDA) reports that the national cattle herd stands at 86.7 million, the lowest since 1951. Prolonged drought conditions in key grazing regions have worsened the situation, depleting pastureland and enabling the spread of drought-tolerant weeds that are nutritionally poor, or even toxic, for livestock.
Compounding the pressure is concern over the spread of the New World screwworm, a parasitic fly species that lays eggs in open wounds of animals. The larvae burrow into flesh, causing severe infections. Although no cases have been reported in the US, recent infestations have reached as far north as Oaxaca, Mexico. Fearing potential outbreaks, the USDA in May suspended cattle imports from Mexico, a critical source of feeder cattle for the US beef market.'This pest poses a serious risk not only to Texas livestock and wildlife but also to the economic backbone of our rural communities,' said Texas Agriculture Commissioner Sid Miller.High futures reflect investor sentiment
The cattle market has responded accordingly. Live cattle futures on the Chicago Mercantile Exchange have surged over 10% this year, hitting a record $2.19 per pound on June 9, making it one of the best-performing commodities in 2025. Other proteins offer a breakFortunately for consumers, not all meat prices are rising as sharply. Despite challenges from avian flu, the average cost of 2 pounds of chicken breast rose just 4 cents to $7.79. Pork prices actually declined, with 3 pounds of pork chops falling 9% to $14.13, according to the AFBF.Still, the soaring cost of ground beef underscores the broader strain in the nation's livestock sector, one that could reshape future pricing and availability unless weather patterns shift or import channels reopen.
Until then, that Independence Day burger is likely to be a premium indulgence.