US Beef Prices to Remain High Amid Historic Cattle Shortage
Beef prices continue to climb to record highs on the back of a 75-year low in America's cattle inventory.
The United States is experiencing a prolonged beef price increase due to a historic cattle shortage, with experts predicting prices will remain high through 2027. The country's cattle herd has shrunk to its smallest size in over six decades, at just 86.2 million cattle as of the beginning of July, down nearly 8 million from 2019.
The USDA has attributed the decline to overlapping factors, including droughts, high production costs, and rising beef prices themselves, which have discouraged heifer retention and delayed any rebuilding efforts. Inflation data shows the beef and veal index is up 9.4 percent over the past year, with Americans paying more than $13 per pound for beef steaks.
Trade policy uncertainty has also contributed to supply issues, with recent outbreaks of the New World screwworm in Mexico further straining U.S. cattle imports. The USDA forecasts tighter supplies will persist through the remainder of the year and into 2027. The cattle shortage has also negatively impacted ranchers and meatpackers, with Tyson Foods announcing it would be shutting down facilities due to the historic shortage.
Experts warn that rebuilding the U.S. cattle herd will take many years and that the current supply constraints will continue to define the cattle market cycle for the foreseeable future.
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