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Wed, 05 Aug 2026

Wed, 05 Aug 2026 What's causing record high US beef prices?

The meat has never been more expensive, due to supply shortages, but no-one is making more money.

* Cattle farmer Eric Gropper sells his animals for $2,500 each, but his costs have also increased significantly.
* The national shortage of cattle is driving up prices due to drought and disease pressure, resulting in the lowest number of cattle since 1951.
* Despite high prices, farmers are not making more profit as their costs have risen too, including higher prices for equipment, fencing, and feed.
* Feedlot companies buy cattle at record highs but sell them at even higher prices, losing money due to inefficiency and limited capacity.
* Meatpackers like Tyson are also losing money due to fixed costs spread over fewer animals and the inability to raise prices further.
* Restaurants and supermarkets can only increase prices so much before customers switch to cheaper alternatives, limiting profits for all parties in the supply chain.
* The situation won't change until more US cattle come to market, which takes around three years.