27-02-2025
Why prices of beef and meat products are skyrocketing
SOUTHAMPTON, Mass. (WWLP) – The recent bird flu outbreak has caused a sharp increase in egg prices, and the same trend is now seemingly happening with beef and meat products.
Unlike with eggs, this latest supply shortage isn't caused by an illness. Rather, cattle ranchers blame the high costs of supplies for keeping herds fed and transporting cattle from the west to east coast.
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Cattle ranchers across the nation have been facing a supply and demand struggle, driving beef prices up. This can be attributed to a variety of factors, like rising interest rates, high grain prices, and shrinking U.S. cattle inventory.
U.S. cattle herds shrunk one percent in January, hitting a 64-year low.
The co-owner at Gwydyr Farm in Southampton, Steven Cowley, said the herd shortages are sending the price of cattle upward.
'A lot of it is because farmers like physically can't produce more animals and they would rather slaughter them now than be able to breed them back,' Cowley said.
As a result, beef prices are now selling for 43 percent more than five years ago at $5.55 a pound. The owner of Arnold's Meats, Larry Katz said they're seeing this spike.
'We do a lot with restaurants, colleges, prep schools, caterers,' Katz said. 'And, you know, they can't keep going up every week on their prices because customers won't come.'
But all aspects of the beef chain are getting more expensive. The cost of the materials used to package meat for sale to consumers has also gone up.
'It's by far the single biggest expense. Probably a third of the price that our customers pay is just the processing thing, which is at the very end,' Cowley said.
Experts say it could take years until herds nationwide are able to grow and adequately meet demand.
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