If it's starting to feel like you're throwing gold onto the summer grill instead of burgers and the occasional steak -- you're not alone: Beef prices in the US have risen almost nine percent since January, with steak and ground beef prices up 12.4% and 10.3%, respectively, over the last year, per CNN.
Why? Experts blame challenges facing the cattle industry including shrinking herds due to drought conditions. Plus, they're facing stiff competition from the rise of imported beef.
Together, it's leading to record-high prices for items like a pound of beef, which averaged $6.12 in June, according to government reports.
Imported beef from countries like Argentina, Australia, and Brazil now accounts for roughly 8% of US beef consumption, while exports of beef have slowed. Tyson Foods CEO Donnie King said recently that “beef is experiencing the most challenging market conditions we’ve ever seen.”
Sellers are looking for ways to keep costs down for consumers, including Walmart, which opened its first-ever owned and operated beef facility in Olathe, Kansas, to work directly with suppliers and cut costs.
Experts add that US consumer demand for beef remains strong despite high prices, but if consumer confidence falls, demand could be at risk, impacting producers and ranchers who already report their dealing with 'razor thin margins' thanks to the skyrocketing cost of feed and drought conditions.