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Time of India
24-07-2025
- Business
- Time of India
After eggs, now ground beef prices are at record high, here's why, and is Trump behind the steep rise
The cost of ground beef in the United States is beginning to make a dent in the wallets of Americans and weigh down their shopping baskets. In June 2025, the prices of ground beef rose by 10.3% in comparison to the same time in 2024. It surpassed $6 per pound. Meanwhile, the price of steak increased by 12.4% within this period. Before the rise in ground beef prices , egg prices were hitting the roof. Earlier in 2025, egg prices more than doubled in price in April when compared to March 2024, according to TIME. The sharp rise was due to bird flu outbreaks on US farms, which led to over 23 million birds being culled. Meanwhile, in early July 2025, egg prices have fallen back down to $3.78 per dozen from $6.23 in April. Food prices as a whole have been on the rise by 2.7 percent over the last year. Explore courses from Top Institutes in Please select course: Select a Course Category Finance healthcare Cybersecurity Management Others Degree Data Analytics others Artificial Intelligence Technology MBA PGDM MCA Project Management Design Thinking Data Science Digital Marketing Operations Management CXO Data Science Leadership Healthcare Product Management Public Policy Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Fintech & Blockchain India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta SEPO - IIMC CFO India Starts on undefined Get Details Over the past 12 months, food prices as a whole have only risen by 2.7%, so what is causing this sharp increase in the price of ground beef? by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 most beautiful women in the world Undo What factors are causing sharp increase in ground beef prices Cattle herd sizes at record low Live Events Amid the prevailing high demand for ground beef products in the US, the supply has been a major issue. There have been only 87 million cattle and calves recorded across the country at the beginning of 2025, according to the American Farm Bureau Federation (AFBF). This signifies that cattle herd sizes are at the lowest in the country they have been for almost 75 years. According to AFBF economist Bernt Nelson, feed steer prices have hit record highs, prompting farmers to sell cattle for meat instead of breeding. Even with high prices, farmers still struggle to make a profit, so many might sell off their remaining cattle because of slim margins. One of the main high costs affecting sustainable profit for cattle ranchers is the price of feed, which ties back to adverse weather from climate change. Drought David Ortega, a food economist and professor at Michigan State University, said, 'One of the main drivers has been the effects of climate change on beef production in the U.S. This is something that doesn't cause prices to rise overnight, so there's a considerable lag involved,' according to TIME. A major drought hit the Great Plains states in 2022, forcing many cattle farms to sell their livestock. 'What that [drought] does is erase feed for producers. There's less forage availability, so they sell a lot of their animals because it becomes very costly to hold on to them,' Ortega further stated. A lot of the sold livestock, often slaughtered and turned into beef products, includes 'breeding stock,' meaning that in the long term, there is less capacity to breed new cows to keep up with consumer demand. Uncertainty due to Trump's tariffs Ortega has said that tariffs have started to play a key role in the rise of beef prices, triggering uncertainty and concerns pertaining to the future. One of the reasons behind the uncertainty is that despite a lot of domestic production, the US still imports a major amount of beef. Earlier in July 2025, President Donald Trump threatened to impose a 50% tariff against Brazil. 'If these do go into effect, or even higher tariffs [are implemented], then I think we're going to see a notable further increase on things like ground beef and hamburger meat,' Ortega said. Brazil is the world's largest exporter of beef. It witnessed an increase in sales of meat to the U.S. this year after a trade war between Washington, D.C., and Beijing escalated. In May, Brazilian exports to the U.S. rose by 20%, and current imports from the country are almost double what they were in June 2024, according to the USDA.
Economic Times
24-07-2025
- Business
- Economic Times
After eggs, now ground beef prices are at record high, here's why, and is Trump behind the steep rise
TIL Creatives The cost of ground beef in the United States is beginning to make a dent in the wallets of Americans and weigh down their shopping baskets. The cost of ground beef in the United States is beginning to make a dent in the wallets of Americans and weigh down their shopping baskets. In June 2025, the prices of ground beef rose by 10.3% in comparison to the same time in 2024. It surpassed $6 per pound. Meanwhile, the price of steak increased by 12.4% within this period. Before the rise in ground beef prices, egg prices were hitting the roof. Earlier in 2025, egg prices more than doubled in price in April when compared to March 2024, according to TIME. The sharp rise was due to bird flu outbreaks on US farms, which led to over 23 million birds being culled. Meanwhile, in early July 2025, egg prices have fallen back down to $3.78 per dozen from $6.23 in April. Food prices as a whole have been on the rise by 2.7 percent over the last year. Over the past 12 months, food prices as a whole have only risen by 2.7%, so what is causing this sharp increase in the price of ground beef? Cattle herd sizes at record low Amid the prevailing high demand for ground beef products in the US, the supply has been a major issue. There have been only 87 million cattle and calves recorded across the country at the beginning of 2025, according to the American Farm Bureau Federation (AFBF). This signifies that cattle herd sizes are at the lowest in the country they have been for almost 75 years. According to AFBF economist Bernt Nelson, feed steer prices have hit record highs, prompting farmers to sell cattle for meat instead of breeding. Even with high prices, farmers still struggle to make a profit, so many might sell off their remaining cattle because of slim margins. One of the main high costs affecting sustainable profit for cattle ranchers is the price of feed, which ties back to adverse weather from climate change. Drought David Ortega, a food economist and professor at Michigan State University, said, 'One of the main drivers has been the effects of climate change on beef production in the U.S. This is something that doesn't cause prices to rise overnight, so there's a considerable lag involved,' according to TIME.A major drought hit the Great Plains states in 2022, forcing many cattle farms to sell their livestock. 'What that [drought] does is erase feed for producers. There's less forage availability, so they sell a lot of their animals because it becomes very costly to hold on to them,' Ortega further stated. A lot of the sold livestock, often slaughtered and turned into beef products, includes 'breeding stock,' meaning that in the long term, there is less capacity to breed new cows to keep up with consumer demand. Uncertainty due to Trump's tariffs Ortega has said that tariffs have started to play a key role in the rise of beef prices, triggering uncertainty and concerns pertaining to the future. One of the reasons behind the uncertainty is that despite a lot of domestic production, the US still imports a major amount of beef. Earlier in July 2025, President Donald Trump threatened to impose a 50% tariff against Brazil. 'If these do go into effect, or even higher tariffs [are implemented], then I think we're going to see a notable further increase on things like ground beef and hamburger meat,' Ortega said. Brazil is the world's largest exporter of beef. It witnessed an increase in sales of meat to the U.S. this year after a trade war between Washington, D.C., and Beijing escalated. In May, Brazilian exports to the U.S. rose by 20%, and current imports from the country are almost double what they were in June 2024, according to the USDA.
Time Magazine
23-07-2025
- Business
- Time Magazine
Why Ground Beef Prices Are Hitting Record-Highs in the U.S.
For many Americans, the cost of ground beef is starting to weigh down their weekly shopping baskets. Ground beef prices rose by 10.3% in June, when compared to the same time last year, surpassing $6 per pound. The price of steak rose by 12.4% within this period. 'Egg prices have been through a rollercoaster ride. And now with beef, we're seeing quite a significant price rise,' says David Ortega, a food economist and professor at Michigan State University. Earlier this year, egg prices skyrocketed, more than doubling in price in April when compared to March 2024. The sharp increase was caused by bird influenza outbreaks on American farms, which infected over 23 million birds that had to be culled. As of early July, egg prices have since fallen back down to $3.78 per dozen from $6.23 in April. Over the past 12 months, food prices as a whole have only risen by 2.7%, so what is causing this sharp increase in the price of ground beef? Here's a breakdown of what's behind the soaring prices: Cattle herd sizes are at a record low Although the demand for ground beef products remains high in the U.S., the supply is facing a squeeze. Cattle herd sizes are at the lowest they have been for almost 75 years, with just under 87 million cattle and calves recorded across the country at the start of 2025, according to the American Farmers Bureau Federation (AFBF). AFBF economist Bernt Nelson has said that prices for feed steers (cattle bred for slaughter) have reached record highs, encouraging farmers to sell their cattle for meat production instead of breeding. 'High cattle prices combined with the unpredictability of future prices and profitability could compel farmers to continue marketing a higher percentage of females for beef rather than breeding,' he said in a February blog post. And as farmers still struggle to make profit despite high prices, they may decide to sell off their remaining cattle due to slim margins. 'Even with these record high prices, margins for cattle farmers and ranchers are razor-thin thanks to continued elevated supply costs,' Nelson said in May. One of the main high costs getting in the way of sustainable profit for cattle ranchers is that of feed for their herds, and this links back to adverse weather conditions brought on by climate change. Read More: Why Were Eggs So Expensive in April? Drought driven by climate change 'One of the main drivers has been the effects of climate change on beef production in the U.S. This is something that doesn't cause prices to rise overnight, so there's a considerable lag involved,' says Ortega. A significant drought took place across the Great Plain states in 2022, forcing a lot of cattle farms to sell their livestock. 'What that [drought] does is erases feed for producers. There's less forage availability, so they sell a lot of their animals, because it becomes very costly to hold on to them,' Ortega notes. A lot of the sold livestock, often slaughtered and turned into beef products, includes 'breeding stock,' meaning that in the long-term there is less capacity to breed new cows to keep up with consumer demand. 'If you couple that with the strong demand for beef, and there has been strong demand in particular for ground beef, because it is a very familiar product to consumers, it really puts a lot of pressure on prices, and that's why we've seen the increases,' says Ortega. Uncertainty due to tariffs and concern over what might happen in the future Ortega says he believes that tariffs 'are starting to play a role' in the rise of beef prices. Despite a lot of domestic production, the U.S. still imports significant amounts of beef, particularly more lean trimmings. These trimmings are important for ground beef products. 'We import a lot of lean trimmings from countries like South Africa and Brazil, and that is in order to be able to blend this with our beef that tends to be fattier, and so we can make the proper blends in terms of fat content,' Ortega says. President Donald Trump threatened earlier this month to install a 50% tariff against Brazil for what he described as a 'witch hunt' against former President Jair Bolsonaro, who is facing allegations that he planned to stay in power despite losing the 2022 Brazilian election. 'If these do go into effect, or even higher tariffs [are implemented], then I think we're going to see a notable further increase on things like ground beef and hamburger meat,' Ortega says. Brazil, the world's largest exporter of beef, saw a rise in sales of meat to the U.S. this year after a trade war between Washington, D.C., and Beijing escalated. In May, Brazilian exports to the U.S. rose by 20%, and current imports from the country are almost double what they were in June 2024, according to the USDA. With beef imports rising by 10% over the past year, a higher U.S. dependency on the product from abroad puts it more at risk should tariffs increase, particularly on top exporters to the U.S., the largest being Canada. The U.S and Canada are currently in the midst of trade negotiations, with Trump most recently threatening a 35% tariff on all Canadian goods starting Aug. 1. Global supply chains of beef have already been disrupted as a result of looming trade wars. 'There is a tremendous amount of uncertainty on the policy and trade front,' Ortega says, arguing that it has contributed to such price increases. According to experts, even the slightest change within the beef market, as a result of tariffs, could further impact prices. 'Tariff-induced trade wars are sowing uncertainty for both ranchers and consumers alike. This has the potential to impact demand for beef, and even small changes in demand with such tight supplies could have a big impact on prices,' said Nelson. Read More: Why Tomatoes Are Becoming a Lot More Expensive How long will consumers feel the impact of these price increases? When asked about when grocery shoppers could see prices start to fall, Ortega calls this the 'million dollar question.' 'Our research shows that it could be four years or so before prices for the consumer start to stabilize,' Ortega says. Other price fluctuations, such as when eggs were reaching record-high prices earlier this year, were more 'predictable' as they were due to bird influenza outbreaks. But as there's more at play regarding the ground beef price hikes, it's harder to know when things will settle.
Yahoo
21-07-2025
- Business
- Yahoo
Beef prices are the new egg prices. They're soaring
First it was eggs, now it's beef. The last time Americans likely noticed spiking prices at the grocery store was when eggs reached record-highs. Since then, egg prices have fallen after the deadly avian flu outbreak was contained and producers built back supply. Now, beef prices are hitting records, rising almost 9% since January, according to the Department of Agriculture, and retailing for $9.26 a pound. June's consumer price index showed steak and ground beef prices are up 12.4% and 10.3%, respectively, over the last year. But lowering beef prices will be harder than lowering the price of eggs. 'Beef is way more complicated than eggs,' said Michael Swanson, chief agriculture economist at Wells Fargo. 'The cattle industry is still the 'Wild West' of the protein market, whereas the egg market is more 'Corporate America' with its supply and demand management.' Record-high beef prices have been a decade in the making due to shrinking herds, drought conditions and the rise of imported beef — all while demand stayed strong. Last month, Tyson Foods CEO Donnie King said during their earnings call that 'beef is experiencing the most challenging market conditions we've ever seen.' Cattle herd sizes are at their lowest levels in 74 years, according to the American Farm Bureau Federation (AFBF). Cattle ranching is not as profitable as it once was, and experts say many ranchers have given up. 'Even with these record high prices, margins for cattle farmers and ranchers are razor thin thanks to continued elevated supply costs,' wrote AFBF economist Bernt Nelson in a market intel report from May. One of those supply costs: feed. Sustained drought throughout large portions of US ranchland have dried out pastures, forcing ranchers to rely on more expensive feed for cattle instead of free-grazing grass, according to the AFBF. At the same time, Americans are looking for more options. Imported beef from countries like Argentina, Australia and Brazil now account for roughly 8% of US beef consumption, according to Swanson. At the same time, exports of beef have slowed — dropping 22% in May compared to the year before, according to the AFBF. 'It's a big change that we've seen this year that wasn't on anybody's playbook. Only a couple of years ago, we were net neutral, where we exported some and imported some,' said Swanson, adding that we'll 'continue to see more beef consumption in the United States being supplied by the world market, and they're happy to do it since we're the highest priced beef in the world.' But Americans continue to eat beef despite record prices, according to the AFBF, with overall US demand remaining strong. With prices so high, some retailers are finding creative ways to cut costs. Last month, Walmart opened its first-ever owned and operated beef facility. The new facility, located in Olathe, Kansas, allows Walmart to work directly with its suppliers, cutting out a middleman and saving on costs. 'This is the first case-ready facility fully owned and operated by Walmart, and that milestone ensures we're able to bring more consistency, more transparency and more value to our customers,' John Laney, executive vice president of food at Walmart, said in a news release. As to when beef prices may fall for everyone, Nelson says it will likely be up to the consumer. 'US consumer demand for meat historically has grown with improved household financial situations and then falls when incomes drop,' Nelson wrote. 'If consumer confidence falls alongside household financial uncertainty, demand for beef could be at risk, especially in the face of record high retail prices.' That would leave producers and ranchers even worse off. 'I say we're closing in on the peak of this current cycle. That's the real concern that this industry has — nobody wants to be caught holding the bag with higher-priced cattle when cattle prices start to decline, which they will inevitably,' said Swanson.
Fox News
14-07-2025
- Business
- Fox News
Price of this summer grilling staple remains at record high as beef lovers adapt
Beef prices in the U.S. continue to hit record highs, yet demand for the popular summer grilling staple remains strong — prompting shoppers, farmers and restaurants to adapt. A pound of ground beef cost $6.67 just before the Fourth of July weekend, according to the American Farm Bureau Federation (AFBF), marking the highest price for beef ever recorded by the group. It was up nearly 70 cents from May, when the Bureau of Labor Statistics reported it skyrocketed 16% from a year earlier and nearly 50% from five years ago. "The main factors for our higher beef prices this year are driven by supply, demand and financial elements like higher interest rates," said Paul Savage, director of commodities forecasting at Chicago-based ArrowStream, which provides supply chain technology to restaurants. A key driver behind the rising prices is the shrinking cattle population. The national herd has declined to 86.7 million head, the lowest since 1951, according to the AFBF. Prolonged droughts in cattle-producing states like Texas, Kansas and Nebraska have devastated grazing pastures, forcing many farmers to cull their herds. At the same time, rising tariffs and ongoing trade disruptions have made cattle production more costly. Additionally, cases of the New World Screwworm – a parasitic fly whose maggots burrow into and feed on the flesh of cattle – halted imports from Mexico to the U.S., though the U.S. Department of Agriculture (USDA) said some ports could reopen soon. The U.S. gets most of its cattle imports from Mexico and Canada. "The rising cost of ground beef is a perfect example of how global trade dynamics and domestic supply constraints collide," Robert Khachatryan, founder and CEO of California-based Freight Right Global Logistics, told Fox News Digital. "Transporting cattle, which often involves multiple cross-country moves between birth, feedlots and processing, has become more costly due to fuel volatility and ongoing driver shortages in the freight sector," Khachatryan said. "From ranch to processor to store shelf, every leg of the journey is costlier, and that cumulative pressure is showing up right on the price tag." The USDA predicts that cattle prices will remain elevated into 2026, meaning retail beef prices likely won't drop for several years. Nonetheless, it remains Americans' second-favorite choice of meat, according to the USDA, with nearly 57 pounds of it being consumed per person annually. While factors such as population growth, recently expanded food assistance benefits and the popularity of high-protein diets are contributing to slightly higher demand, overall consumption has not dramatically spiked. "We're producing roughly the same amount of beef that we did in 2015 but, given a higher population, supply is tight," Savage said. The U.S. population reached 340.1 million in July 2024, up from 336.8 million from the year before, marking the highest year-over-year increase since 2001, according to the U.S. Census Bureau. Last year, Supplemental Nutrition Assistance Program (SNAP) benefits were increased for many recipients, but President Donald Trump's "big, beautiful bill" includes cuts to the program. "Potentially, lower interest rates [for farmers] would help and the recently announced changes to the SNAP program may also help lower prices," he said. "But it won't happen overnight." In the meantime, the U.S. is importing more beef from Australia, New Zealand and Brazil, Savage said, and limiting beef exports to other countries to help stabilize supply. Farmers are also growing bigger animals to offset the lower cattle harvest. For more Lifestyle articles, visit "Cattle weights are actually at an all-time high this year," he said. As for the 130,000 restaurants that ArrowSteam services, many are swapping out expensive steaks for value-friendly options and changing menu recipes to include less expensive proteins, he said. Shoppers are seeking out more affordable cuts such as chuck, round and top sirloin, Savage said, though it has driven up their prices more than premium options like strip steaks. Some grocery store chains are leaning into beef and pork blends, chicken-focused products and seasonal promotions to steer shoppers toward more affordable proteins, according to Khachatryan. The cost of other meat options, including chicken, has been more stable. The price of pork chops has seen the lowest drop, with an average price of $14.13 for three pounds – almost 9% lower than in 2024, according to the AFBF.
