Latest news with #beef
Fast Company
15 hours ago
- Business
- Fast Company
Beef prices soar to record highs in the U.S.
Anyone firing up the grill this summer already knows hamburger patties and steaks are expensive, but the latest numbers show prices have climbed to record highs. And experts say consumers shouldn't expect much relief soon either. The average price of a pound of ground beef rose to $6.12 in June, up nearly 12% from a year ago, according to U.S. government data. The average price of all uncooked beef steaks rose 8% to $11.49 per pound. But this is not a recent phenomenon. Beef prices have been steadily rising over the past 20 years because the supply of cattle remains tight while beef remains popular. In fact, the U.S. cattle herd has been steadily shrinking for decades. As of Jan. 1, the U.S. had 86.7 million cattle and calves, down 8% from the most recent peak in 2019. That is the lowest number of cattle since 1951, according to the U.S. Department of Agriculture. Many factors including drought and cattle prices have contributed to that decline. And now the emergence of a pesky parasite in Mexico and the prospect of widespread tariffs may further reduce supply and raise prices. Here's a look at what's causing the price of beef to rise. Smaller herd The American beef industry has gotten better at breeding larger animals, so ranchers can provide the same amount of beef with fewer cattle, said David Anderson, a livestock economist at Texas A&M. Then in 2020, a three-year drought began that dried out pastures and raised the cost of feed for cattle, according to the American Farm Bureau. Drought has continued to be a problem across the West since then, and the price of feed has put more pressure on ranchers who already operate on slim profit margins. In response, many farmers slaughtered more female cattle than usual, which helped beef supplies in the short term but lowered the size of future herds. Lower cattle supplies has raised prices. In recent years cattle prices have soared, so that now animals are selling for thousands of dollars apiece. Recent prices show cattle selling for more than $230 per hundredweight, or hundred pounds. Those higher prices give ranchers more incentive to sell cows now to capture profits instead of hanging onto them for breeding given that prices in the years ahead may decrease, Anderson said. 'For them, the balance is, 'Do I sell that animal now and take this record high check?' Or 'do I keep her to realize her returns over her productive life when she's having calves?'' Anderson said. 'And so it's this balancing act and so far the side that's been winning is to sell her and get the check.' Disease dilemma The emergence of a flesh-eating pest in cattle herds in Mexico has put extra pressure on supply because officials cut off all imports of cattle from south of the border last year. Some 4% of the cattle the U.S. feeds to slaughter for beef comes from Mexico. The pest is the New World screwworm fly, and female flies lay eggs in wounds on warm-blooded animals. The larvae that hatch are unusual among flies for feeding on live flesh and fluids instead of dead material. American officials worry that if the fly reaches Texas, its flesh-eating maggots could cause large economic losses as they did decades ago before the U.S. eradicated the pest. Agricultural economist Bernt Nelson with the Farm Bureau said the loss of that many cattle is putting additional pressure on supply that is helping drive prices higher. Tariff trouble President Donald Trump's tariffs have yet to have a major impact on beef prices but they could be another factor that drives prices higher because the U.S. imports more than 4 billion pounds of beef every year. Much of what is imported is lean beef trimmings that meatpackers mix with fattier beef produced in the U.S. to produce the varieties of ground beef that domestic consumers want. Much of that lean beef comes from Australia and New Zealand that have only seen a 10% tariff, but some of it comes from Brazil where Trump has threatened tariffs as high as 50%. If the tariffs remain in place long-term, meat processors will have to pay higher prices on imported lean beef. It wouldn't be easy for U.S. producers to replace because the country's system is geared toward producing fattier beef known for marbled steaks. Prices will likely stay high It's the height of grilling season and demand in the U.S. for beef remains strong, which Kansas State agricultural economist Glynn Tonsor said will help keep prices higher. If prices remain this high, shoppers will likely start to buy more hamburger meat and fewer steaks, but that doesn't appear to be happening broadly yet — and people also don't seem to be buying chicken or pork instead of beef. Nelson said that recently the drought has eased — allowing pasture conditions to improve — and grain prices are down thanks to the drop in export demand for corn because of the tariffs. Those factors, combined with the high cattle prices might persuade more ranchers to keep their cows and breed them to expand the size of their herds. Even if ranchers decided to raise more cattle to help replace those imports, it would take at least two years to breed and raise them. And it wouldn't be clear if that is happening until later this fall when ranchers typically make those decisions. 'We've still got a lot of barriers in the way to grow this herd,' Nelson said. Just consider that a young farmer who wants to add 25 bred heifers to his herd has to be prepared to spend more than $100,000 at auction at a time when borrowing costs remain high. There is typically a seasonal decline in beef prices as grilling season slows down into the fall, but those price declines are likely to be modest.
CNN
20 hours ago
- Business
- CNN
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.
Yahoo
20 hours ago
- 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.
CNN
a day ago
- Business
- CNN
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.
Yahoo
2 days ago
- Health
- Yahoo
These Are The Healthiest Types Of Beef You Can Eat
Beef gets a bad rap. Yes, red meat is high in saturated fat and if eaten in excess it can increase the risk for heart disease and contribute to issues like obesity, cancer, and diabetes. But beef is also a great source of protein and iron, and it can contribute to a healthy diet if you choose the right type and limit your intake to three portions per week. The key is buying lean cuts, which contain less than 10 grams of fat per serving. Registered Dietitian Angel Luk recommends looking for options with the least amount of saturated fat. "The amount of saturated fat is an important consideration for people living with high cholesterol," she says. "Generally speaking, aiming for less than 16 grams of saturated fat a day is a heart healthy approach. Lean cuts of red meat, such as round, sirloin, or loin, are lower in saturated fat and can be part of a healthy diet, providing important nutrients such as iron, zinc, B vitamins and protein." Beef can only be labeled as lean if it complies with the regulations set by the USDA, so check the package for the special marking. It's different from the grading label producers use (for example, when you see a cut marked as "Prime" or "Select"), which has to do with marbling. The key words you're looking for are "lean" or "extra-lean". You can ask your butcher for a guide to different cuts too. Read more: Costco Vs Trader Joe's: Which Store Sells The Best Ribeye Steak? Avoid Marbling And Processed Beef While marbling leads to delicious flavor, unfortunately, it does not contribute to a healthy heart. Prime doesn't equal lean, so even the most expensive T-bone and porterhouse steaks should be avoided. Go for Choice and Select cuts, which are typically cheaper. "Select beef tends to be the leanest," Luk explains, "making it a better choice for people opting for red meat as part of their saturated fat 'budget.'" Some lean cuts include chuck roast, shoulder roast, and arm roast, which all benefit from slow cooking. You can smoke chuck roast or cook a pot roast in the oven with any option. As for steak, sirloin tip side is the leanest option, with just five grams of fat per serving, but top sirloin makes for an unbelievably juicy steak. Anything with less than five grams of fat is considered extra-lean by the USDA, and if you can get something organic or grass-fed, even better. As for ground beef, look for the lowest fat percentage you can find, like 95% lean. The big thing to really avoid is anything that is ultra-processed. "Ultra processed beef such as hot dogs and sausages, and cuts with high amounts of saturated fat like ribeye with a lot of visible marbling are the least healthy," Luk suggests. You can treat yourself once in a while, but if you want to watch things, make sure it's lean beef in your rotation. Read the original article on Tasting Table.
