After the recent surge in egg prices, consumers are now facing another price hike — this time for beef.
Want to get caught up on what's happening in SoCal every weekday afternoon? Click to follow The L.A. Local wherever you get podcasts.
The cost of beef in the U.S. has been climbing steadily, and it's now hitting record highs. The increase comes as a result of several factors that have strained the beef industry, leading to supply shortages and climbing prices.
One major cause of the rise in beef prices is the shrinking cattle inventory. U.S. cattle herds have dropped to their lowest levels in 64 years, which has contributed to a 43% increase in beef prices over the last five years, WWLP reported.
Ongoing drought conditions, especially in key cattle-producing states, have reduced the availability of feed and water, forcing ranchers to sell off cattle. Rising feed prices, high fuel costs and increased interest rates have also made it financially difficult for ranchers to maintain or expand herds.
Additionally, the process of increasing cattle numbers is slow. It takes about two years for a calf to reach market weight and be ready for slaughter, further delaying the recovery of the herd.
Along with fewer cattle, the industry is also facing rising costs for essential supplies, including the materials used for packaging meat. These higher production costs are often passed on to consumers at the grocery store.
The cost of beef took a sharp upward turn in January, with prices rising 5.5% in just one month alone, according to a NerdWallet analysis of the latest consumer price index report.
Popular cuts like sirloin steak and ground beef are nearing record prices. Sirloin steak averaged $11.97 per pound in January, just shy of the $12.01 per pound peak recorded last November. Ground beef was priced at $5.55 per pound in January, slightly lower than its record high of $5.67 in September 2024.
These price spikes follow a trend that began in the early days of the COVID-19 pandemic, when demand surged as more consumers cooked at home.
Experts predict that the situation may not improve quickly. The U.S. cattle herd will take years to rebuild to a level that can meet growing demand and as a result, beef prices are likely to remain high for the foreseeable future.
Follow KNX News 97.1 FM
Twitter | Facebook | Instagram | TikTok