US Ground Beef Prices Hit Record $7.06/lb, Up 13% YoY as Cattle Herd Shrinks to 75-Year Low
The average price of US ground beef rose 13% year-on-year in May to a record $7.06 per pound, while steak prices surged 16% to $12.80. The US cattle herd has fallen to its smallest in 75 years, constrained by drought, high production costs, and a screwworm outbreak in Texas.
The cost of US ground beef climbed to an all-time high in May, with the average price reaching $7.06 per pound — a 13% increase year-on-year and a 58% rise since 2020. Steak prices followed a similar trajectory, jumping 16% year-on-year to $12.80 per pound, the second-highest level on record.
The surge is driven by a historic contraction in the US cattle herd, which has dropped to its smallest size in 75 years. Ranchers are grappling with persistent drought, elevated feed and operational costs, and a New World screwworm outbreak in Texas that is hampering herd recovery. Nearly 80% of US cattle are now located in areas experiencing dryness or drought, according to recent data.
These supply-side pressures are expected to keep beef prices elevated well into 2027, leaving American consumers facing record prices at the meat counter with no near-term relief in sight.
Source: The Kobeissi Letter