Beef is so expensive now mainly because the U.S. cattle herds have shrunk to their lowest levels since the early 1950s, causing a supply shortage. In 2025, beef prices have risen over 8%, reaching about $9.26 per pound in July. Several factors contribute to this shortage and price increase:
- The U.S. cattle inventory is at its lowest in over 70 years due to drought conditions, economic pressures, and early sales of breeding females.
- Prolonged droughts have dried out pastures, forcing ranchers to rely on more expensive feed rather than natural grazing.
- An outbreak of screw-worm parasites in Mexico has led to import restrictions by the USDA, further limiting supply.
- Demand for beef remains strong and even growing, both domestically and globally.
- The cattle industry faces high operational costs and narrow profit margins, discouraging herd expansion.
- Tariffs and disrupted trade policies also play a role in raising costs.
- The beef market is less corporatized compared to other proteins (like eggs), making supply adjustments slower and more volatile.
Overall, the combination of supply constraints, rising costs, sustained demand, and external factors like drought and import restrictions has pushed beef prices to record highs with no immediate relief expected.
