Beef prices hit record high of $9.26 per pound amid supply shortage

Cow meat prices have increased by 9 % since the beginning of the year, as it reached a new record due to the high demand and a diminishing supply, according to the US Department of Agriculture (US Department of Agriculture).

In June, the prices of meat outperformed the entire food category at home, as the prices of beef and ground beef increased by 12.4 % and 10.3 %, respectively, compared to the previous year, according to the consumer price index at the Ministry of Labor (CPI).

Cow meat prices now reach a record number $ 9.26 per pound on retailers starting from June, according to the US Department of Agriculture.

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“If this is familiar, it is because we saw a similar rise in eggs earlier this year,” said Michael Swanson, chief economist in the field of agriculture at the Wales Vargo Arne Institute.

Cow meat prices have increased 9 % since the beginning of the year. (Bob Riha, JR./GETY Images / Getty Images)

The issue is that the demand for beef continues to excel. At the same time, producers still deal with high input costs for feed, employment and energy.

“While the narrow supplies were a major factor in increasing livestock and beef, the demand is the other part of the equation,” said Burnet Nelson, an economist at the US farm office union, in a report in May. “With a largely fixed width side, the American demand for cow meat is Linchpin, which carries thin profit margins for farmers and livestock breeders in our nation.”

He pointed out that if the demand is weak, it is possible that the prices of livestock will decrease, but it will lead to “a major obstacle to any meaningful expansion in the American cattle herd.”

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The leaders of the industry appear to be alarm

“Cow meat is witnessing the most difficult market conditions that we have ever seen,” told Tyson Foods Donnie King in May.

The issue is that the demand for beef continues to excel. (Joe Raedle / Getty Images / Getty Images)

Brady Stewart, chief supply chain employee in Tyson, told analysts that the company had witnessed a “significant decrease”, about 18 %, in the number of cows sent to the slaughter. The company also noticed less than the young cows that are raised for meat as farmers keep them to develop their herds again. The number of calves fell about 4 % compared to last year, the company said in May.

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The CEO of Omaha Steaks Nate Rempe has chanted similar concerns last month, and informed Fox Business’ Maria Bartiromo On “Morning with Maria“The number of livestock heads in the country has unprecedentedly low since the fifties.

“The pressure pressure puts a lot of upward pressure on the price, especially since the demand is still strong in the United States,” he said.

The main retailers were monitoring the prices of cow meat, which affected their guidelines for the fiscal year 2025.

Walmart Cfo John David Rayey Fox Business earlier this year told the food that the food is “slightly inflated”, which is really due to some items such as eggs, bacon and some other meat. “

Meanwhile, Windy Kirk Tanner CEO also told analysts that the prices of beef driving inflation.