Due to Cattle Shortages Beef Prices are the Highest They’ve Ever Been in the US

American consumers were hit with shockingly high beef prices as cattle inventory dwindles. Cattle farmers are benefiting from the low cattle inventory, but records show American shoppers are eating less beef due to the unaffordable prices.

The Price of Beef Skyrockets

In July 2025, beef hit a record-breaking $6.25 per pound. Since then, prices have only increased by almost 13% year-over-year in August. This is a concerning trend that falls in line with the general increase in the price of food (and specifically meat) due to inflation over the past year. 

A Stark Increase From 2020

During the pandemic, beef prices were low, as inventory was plentiful. However, since February 2020, the price of beef has increased by a whopping 51% as the supply and demand imbalance has become imbalanced.

Lowest Cattle Inventory in 70 Years

A cattle rancher from Illinois explained that the drought has caused the lowest cow inventory since 1951. This has forced farmers to liquidate cows, but it also causes the price of beef to increase dramatically. 

Demand Was Strong Until Recently

While supply has been dwindling for a few years, demand remained high as American consumers love their hamburgers and steaks. However, consumers are finally hitting a breaking point and reeling in their beef intake as the prices are just too high to justify for many families.

Price Climb for Ranchers

Overhead costs have also increased for ranchers as the cost of labor, feed, and farming equipment continues to tick up. The tariffs have also hit the beef industry hard, contributing to higher beef prices on imported meat.

Limited Rainfall

Limited rainfall in the years reading up to now has caused dry conditions. These droughts caused many farmers to sell their inventory prior to this year. Unfortunately, with so little inventory and increased prices, farmers have no choice but to pass the price down to the consumers through beef prices.

Beef Prices Will Remain High in 2026

MSU agricultural economist Josh Maples explained, “The number of calves born in the U.S. has been declining for the past seven years, and we are likely near the cyclical point in cattle production. The next cycle begins when inventories start growing again.”

Cattle Ranchers Face a Choice

Now, cattle ranchers face a choice. They can either sell now while the prices are high, and they will turn a hefty profit. Or, they can expand by keeping more cows, especially if they sell to consumers who buy locally sourced beef.

Ranching in America

Ranching in America comes with great highs and lows. One cattle producer in Utah explained the current market for beef: “We’ve kind of hit this perfect storm. 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.”

If Prices Continue to Increase

Beef has never been more expensive in the U.S., and as they face several other economic challenges, more and more Americans are not buying beef. In the past 6 months, 72% of Americans saw beef becoming more expensive, and 48% of people are reducing the amount of beef they’re buying in response.

Plant-Based Products See an Increase

Outside of the droughts and cattle inventory lull, there has also been an increase in plant-based alternatives, which has contributed to the decline of beef sales. This is most prevalent with Gen Z and millennials. 

Ranchers Get Relief but Consumers Pay the Price

While ranchers are getting some much-needed relief after several years of dry, poor conditions for their cattle, consumers are footing the bill. If prices continue to increase at this rate, it is highly likely that American consumers will turn to beef alternatives in droves.

Repopulation is Slow

Repopulation of cattle is slow for a couple of reasons. High operation costs are preventing ranchers from investing in expansion, which means farmers aren’t investing in new cattle, but rather selling the ones they currently have.

Selling Out

For many ranchers, it is more economical to sell the young female cows (heifers) than to keep them for breeding. Turning a profit by selling them in the immediate is more profitable than trying to build a new herd in the current economy.

Beef May Remain in Short Supply

Since so many ranchers are electing to sell their heifers that would otherwise be retained int eh herd and it takes years to raise a new cow, beef will remain in short supply for the foreseeable future. Thus, prices will remain high and consumers will suffer.

Business Owners Forced to Raise Prices

Business owners are forced to raise their prices in order to keep up with cost. Hamburgers that cost under $10 during het pandemic are now well over $12. One business owner at the Block 16 sandwich shop in Omaha, Nebraska stated, “Sometimes I look at our menu and I’m like, ‘Oh my God, we’re charging that much for a burger?’ But it’s what you’ve got to do to stay in business.”

Consumers are Slowing Down on Beef

After years of high beef demand, consumers are now slowing down on their beef spending. Compared to last year, shoppers bought less ground beef, marking a trend shift that we have not seen in several years.

What Consumers are Saying Online

In a Reddit thread called “Beef prices are getting out of hand”, some consumers explain that they are switching to alternatives in light of the soaring prices. One commenter stated, “I’ve switched to pork, fish, and poultry for the most part. Beef is a luxury right now.”

Comparisons With Other Meat

Another commenter in the same thread noted that a bone-in ham shank costs $2.99 per pound while a ribeye steak costs $21.99. The difference is just too hard to justify.

What Will it Take for Beef Prices to Come Down?

In order for beef prices to come down the cattle supply will need to recover, which may take years. It is possible that prices may lower as a result of consumer demand waning, however, ultimately it will take time to rebuild the cattle supply.