Ground Beef Tops $6 Per Pound for First Time Since 1980s
The month of June marked a significant milestone for American consumers and the beef industry alike. According to the latest Consumer Price Index data from the U.S. Bureau of Labor Statistics, the national average price for ground beef surpassed $6 per pound — the highest ever recorded since data collection began in the 1980s.
AgNet West reporter Lorrie Boyer highlights that steak prices saw the most dramatic year-over-year increase among beef products, rising 12.4% since June 2024. Ground beef followed closely with a 10.3% increase. In contrast, pork products rose by just 0.5%, and chicken by 3.9%, emphasizing beef’s unique upward trajectory in price.
Beef Supply Tightened by Drought and Economic Pressures
Several underlying factors are driving these sharp increases in beef prices. Chief among them is the ongoing reduction in U.S. cattle herds, a consequence of multi-year drought conditions spanning from 2021 to 2022. Courtney Schmidt, sector manager at the Wells Fargo Agri-Food Institute, notes that the industry is still struggling to rebuild herds lost during that period.
“The lower supplies of beef are really what’s driving up prices right now,” Schmidt explained, citing the slow pace of herd recovery across major cattle-producing regions.
Fewer Farms, Higher Costs
Compounding the issue is a decline in the number of U.S. farms and ranches. According to the USDA’s latest Census of Agriculture, the total number of farms in the United States fell by 7% from 2017 to 2022. The American Farm Bureau Federation attributes this trend to persistently high production expenses and mounting foreign competition — both of which make it increasingly difficult for smaller and mid-sized operations to remain viable.
Mexican Cattle Import Ban Adds Pressure
Adding further strain to an already stressed supply chain, the U.S. government suspended live cattle imports from Mexico in May due to the discovery of the New World screwworm. This temporary ban on Mexican cattle imports has tightened supply even more, contributing to the upward pressure on beef prices.
Consumer Demand Remains Resilient
Despite rising prices, demand for beef remains strong across the U.S. marketplace. Consumers continue to purchase beef at higher volumes, even as inflationary pressures squeeze household budgets.
The current confluence of drought recovery, reduced farm numbers, international biosecurity concerns, and robust demand creates a complex challenge for the beef industry. As herd rebuilding continues and market forces adjust, price volatility is likely to remain a key concern for both producers and consumers in the months ahead.