Ranchers Warn the Worst Collapse in Cattle Production Will Make Meat Prices Double This Winter

The USDA has reported that beef prices have reached a record high this week, and are expected to increase by 100% in the coming month compared to the same period last year.

This has caused shortages of various types of meat across grocery stores, with even ground beef being subject to higher prices due to a decades-low supply.

The nation’s declining cattle herd combined with growing input costs for U.S. farms and ranches has driven wholesale meat costs up to $8 per pound, according to official data.

Analysts anticipate that this figure could reach above $10 in December as demand increases seasonally. As a comparison, beef cost around $5 per pound in 2022, which is near the ten-year average.

This rapid price appreciation means carnivores will have to double what they spent on their favorite cut just one year ago if they wish to bring it home this winter.

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In reality, meat inflation at U.S. stores may be even greater than the USDA forecast for wholesale prices suggests due to increasing labor and transportation costs.

For example, ground beef is projected to sell for $8.99 per pound next month, sirloin at $14.00 per pound, T-bone at $15.39 per pound, and ribeye at $21.99 per pound.

“Relative to other proteins, beef prices are likely to stay elevated for the next couple of years due to tighter supplies,” according to Wells Fargo Agri-Food Institute sector manager Courtney Schmidt. “All consumers will be paying more for all beef products for several more years,” added Wells Fargo’s Chief Agricultural Economist Michael Swanson.

Retailers have reported dwindling deliveries and reduced meat supplies at stores, putting ranchers in a difficult situation despite record prices.

Low rainfall in prime cattle-raising areas has caused pastures to become barren, compounding the current supply shortage and increasing costs.

This may lead to changes in food service menu items, with businesses attempting to maintain their profit margins by raising the price of burger patties and other menu items.

Fast food companies such as McDonald’s, Burger King, and Shake Shack are some of the largest buyers of meat in the U.S., but they may be required to raise prices yet again in 2024 due to these escalating costs.

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Additionally, these companies are being motivated to use more plant-based alternatives for their products as part of an effort to “reduce their environmental impact amid climate change.”


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