Ground beef has long been a staple food for many households. From hamburgers to tacos to meatballs, ground beef is a versatile and affordable meat option. However, over the past few years, the price of ground beef has skyrocketed, leaving many consumers wondering – why is ground beef so expensive?
A Historically Tight Cattle Supply
The primary driver behind the high cost of ground beef is low inventory of cattle in the United States. Cattle supply and beef production go hand in hand – fewer cattle means less beef to go around.
In January 2023, the US cattle inventory totaled only 86.7 million heads of cattle. That’s the lowest cattle inventory the US has seen since 1959, according to data from the US Department of Agriculture (USDA).
The total beef cow inventory has dropped to just 279 million, which is a 1% decrease compared to 2022. This decline in the nation’s beef cattle herd is directly leading to less ground beef production and, in turn, higher prices
Why the Smaller Cattle Herd?
So why has the US cattle herd shrunk so drastically in recent years? There are a few key reasons
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Years of Drought: Drought conditions force ranchers to spend more to feed and maintain their cattle. This has led many to downsize or exit the business.
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High Cost of Production: The costs of fuel, equipment, animal feed, and other inputs have risen, squeezing cattle producer’s margins.
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Financial Pressures: Producers have sold off cows to pay debts instead of maintaining or growing their herds.
Essentially, cattle ranching has become more expensive and less profitable. This has discouraged ranchers from maintaining and expanding their herds, resulting in a historically tight cattle supply.
Lagging Supply Growth
Not only is the current cattle inventory low, but growth in supply has been lagging. The cattle cycle typically follows a pattern of expansion and contraction that lasts about 10 years from peak to peak.
But currently, the cattle cycle is estimated to last 14-16 years, according to agricultural economists. This prolonged cattle cycle indicates slower growth in herd rebuilding.
It takes years to rebuild beef cattle inventory once it’s been liquidated. Heifers take 18-24 months to reach slaughter weight. And it takes time and money for ranchers to feel comfortable expanding.
So even if producers start expanding herds now, it will be years before we see any significant increase in cattle numbers and beef availability.
Strong Demand for Beef
At the same time that beef supply has tightened, consumer demand has remained strong. Americans love their burgers, steaks, and other beef products.
Per capita consumption of beef in the US totaled 57.2 pounds in 2022, just below record highs. Beef demand typically rises going into the summer grilling season as well.
This combination of low cattle supplies and ongoing beef demand has led to the imbalance in the market. Less ground beef is making it to the shelves at a time when consumers continue eager to buy it.
Added Pressure from Tariffs
To further complicate matters, new tariffs have recently been enacted that impact beef imports into the US. About 10% of beef consumed in America comes from foreign sources.
The countries we import the most beef from – Canada, Mexico, Australia – are now facing 25% tariffs when exporting to the US. This raises costs for imported beef. And with domestic beef production constrained, it adds even more pressure on overall beef supplies and prices.
Prices Reaching New Highs
Given all these converging factors, ground beef prices have hit unprecedented levels. According to January 2023 data from the Bureau of Labor Statistics:
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Ground beef cost an average of $5.55 per pound nationally, up 45% from $3.80 per pound in January 2019.
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The average price in cities like New York and San Francisco is even higher, exceeding $6 per pound.
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Bargain-priced ground beef is extremely hard to find these days. Even most store brand ground beef now costs $4 per pound or more.
Prices are expected to continue trending upwards throughout 2023 and into 2024, especially as we enter grilling season when demand peaks. There’s no quick fix that will dramatically expand cattle inventory or reduce beef costs. So consumers should be prepared to pay record-high prices for ground beef for the foreseeable future.
Tips for Saving Money on Ground Beef
While there’s no escaping the high cost of ground beef currently, there are a few ways shoppers can try to save:
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Buy in bulk when possible – Buying 3-5 pounds of ground beef at once yields lower per-pound costs at many stores. Break bulk packs into smaller portions and freeze.
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Look for manager markdowns – Check for ground beef marked down for quick sale due to nearing expiration dates. Just cook or freeze promptly.
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Substitute with chicken or pork – Swapping in cheaper proteins like chicken breast or pork loin for some meals.
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Use leaner blends – Opting for 90/10 or 93/7 meat-to-fat ratio blends costs less than fattier 80/20 ground beef.
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Cook with less beef – Stretch ground beef by mixing in vegetables, grains, chopped mushrooms, etc.
While ground beef prices are sky-high, there are small ways to mitigate the costs. But overall, consumers will simply have to accept paying more until cattle supplies can rebound and prices stabilize. Moderating beef demand would also help rebalance the market, but Americans’ love of burgers shows no signs of waning. Ground beef will likely remain expensive for some time as tight inventories keep supplies limited.
Strong consumer demand
Signs indicate that demand for beef isn’t flagging, and it’ll likely pick up as warm weather invites more people to fire up a grill.
Demand typically peaks in the summer, contributing to higher prices through July, especially around the Fourth of July holiday, says Bernt Nelson, an economist with the American Farm Bureau Association. “The real question will be, are we seeing some exhaustion? Will these consumers start to change over to cheaper substitutes? There’s a lot of unknowns surrounding that.”
The situation with consumer demand could change quickly if consumers’ feelings about the economy continue to deteriorate and if signs of a recession worsen. If demand drops considerably, that’ll likely lead to lower prices. While that could be good for consumers who still want to buy beef, it’s not the kind of thing that’ll help the supply-side of the equation.
Why is beef so expensive?
Beef is so expensive right now because drought, high grain prices, inflation and rising interest rates made cattle farming a costly endeavor in recent years. To deal with rising operating costs, many U.S. cattle farmers reduced the size of their herds — and some got out of the business altogether. As a result, the U.S. cattle inventory is the smallest it’s been since 1951.
Smaller herds mean fewer cattle are available for beef. But consumers have maintained a healthy appetite for it, even amid rising prices. That combination of low supply and steady demand has pushed prices higher.
Now, tariffs add another layer to consumers’ price problem. The U.S. imports beef from a long list of countries, with most of it coming from Brazil, Australia, Canada, Mexico and New Zealand. Some of those imports now face a new 10% tariff. (Beef is exempt from the Mexico and Canada tariffs under the United States-Mexico-Canada Agreement.)
The cost of tariffs are typically passed through to consumers, so shoppers will likely see fresh price hikes soon, if they haven’t already.
Is “Wagyu” ground beef a scam?
FAQ
Why did ground beef prices go up?
Beef is so expensive right now because drought, high grain prices, inflation and rising interest rates made cattle farming a costly endeavor in recent years. To deal with rising operating costs, many U.S. cattle farmers reduced the size of their herds — and some got out of the business altogether.
What is the average price for 1 lb of ground beef?
Is ground beef expensive right now?
Trends suggests that prices will continue to surge throughout 2025 and beyond. According to the Bureau of Labor Statistics, in January, sirloin steak prices averaged $11.97 per pound, compared to $8.35 in 2019. The average price for ground beef stood at $5.55 per pound, compared to $3.80 in 2019.
When was beef .99 a pound?
In ( 2021 ) The Chuck Of Ground Beef Was Just . 99 Cents A Pound , Forward to ( 2024 ) The Price Has Ballooned To Anywhere From $ 4.50 to $6.00 A Pound , It Is 5X What We Used To Pay . What Do You Think About This , What Happened In Just 3 Years ?
Why are beef prices so high?
This consolidation has given these companies greater leverage in setting prices, potentially leading to higher ground beef costs for consumers. Increasing global demand for beef, particularly from emerging markets like China, has also contributed to price increases.
Why is ground beef so expensive?
Climate change and environmental regulations are also playing a role in the rising cost of ground beef. Extreme weather events can disrupt cattle production, while regulations aimed at reducing greenhouse gas emissions can increase the cost of raising cattle. Finally, consumer demand and changing preferences have also influenced ground beef prices.
How does feed affect ground beef prices?
Feed, constituting the lion’s share of cattle production expenses, plays a pivotal role in determining ground beef prices. The rising cost of corn, soybeans, and other grains used in cattle feed has put upward pressure on production costs, ultimately translating into higher beef prices.
Are beef prices near record highs?
Beef Prices Are Near Record Highs. Drought, high grain prices, and interest rates have contributed to record-high prices for products like ground beef and steak.
How much does beef cost per pound?
The average price for ground beef stood at $5.55 per pound, compared to $3.80 in 2019. Overall, the cost of beef and veal has risen by 5.5% since last year. Need a break? Play the USA TODAY Daily Crossword Puzzle. Why are beef prices surging? Beef prices are ballooning because the cattle inventory in the U.S. is low.
Why does meat cost so much?
The tray and pads from the supermarket. So much goes into beef production, and all of those costs have gone up, which affects the cost of a hamburger or a steak,” Lively says. He adds that carbon dioxide, which is used in ground beef production to keep meat cold, has almost doubled in price over the past year.