Wendy’s classic “where’s the beef?” slogan from the 1980s seems more applicable today than ever. According to recent data from the U.S. Bureau of Labor Statistics, ground chuck prices are up 51% since 2020.
They also reached a two-decade high at $6.63 per pound. WCCO reported that process shot up by nearly 14% last month alone.
Audacy has recently reported on fast food burger staple McDonald’s starting up deals after raising prices 40% and on at least one case of attempted beef theft that involved the suspect shoving meat into his pants. So, we’re asking: where is the beef and why is it so expensive?
Economists cited by WCCO pointed to drought and higher demand than supply as well as President Donald Trump’s tariff program. Despite the high prices, it seems that Americans are still putting meat in their grocery carts.
However, there is less of that beef to go around. NPR reported this week that the U.S. cattle herd is the smallest its been in 75 years, with the U.S. Department of Agriculture continuing to record a shrinking number of calves this simmer. Forecasts from the department indicate that beef production will drop 4% this year and another 2% next year.
Even though ranchers like Calli Williams of South Dakota would love to grow their herds, they are facing challenges that include limited grass to feed animals as land prices rise. She said they can’t make the financial investments to increase production even though she would like to cash in on the high beef prices.
Five years ago, when prices were 51% lower, the COVID-19 pandemic was disrupting the industry, including meatpacking plants and supply chains. In the years since, high inflation and high interest rates have continued to impact business and personal finance in the U.S. At one point, beef prices were falling due to too much available meat, which made producers reluctant to expand their herds.
Then there was a drought, caused in part by climate change. Meat producers slaughtered more cows than ever in USDA recordkeeping in 2022, according to NPR. There has also been a decrease in foreign imports more recently. For example, Brazilian beef now faces a 76% tariff and the screwworm pest resulted in the USDA blocking livestock from Mexico from entering the country.
“We’ve kind of hit this perfect storm,” said Brady Blackett, a third-generation Angus cattle producer in Utah, according to NPR. “There’s healthy competition for the cattle, and there’s not enough of them to fulfill the demand. And so it has driven prices to historic highs.”
As Williams in South Dakota noted, getting cattle numbers up can be a slow process, since it takes years to raise a single cow. Now financial challenges make it even more difficult.
NPR said dearth of beef is something we might have to get used to. It looks like some consumers are catching on, the outlet added, with research firm Circana reporting that people are now moving away from beef as prices remain high.