US Beef Prices Soaring Due to Record-Low Cattle Supply
Beef prices in the United States continue to rise sharply as the country faces its smallest national cattle herd since 1951, according to industry analysis reported by CNBC. Official figures show US beef and veal prices are up 14.7% year on year, significantly outpacing the 3.1% increase in overall food prices, highlighting the scale of the supply imbalance.
The primary driver remains prolonged drought across key cattle-producing regions, which has discouraged ranchers from retaining animals for breeding. Instead, cattle numbers have been reduced to manage feed availability and cash flow. At the same time, input costs for US ranchers have risen by more than 50% over the past five years, adding further pressure to already stretched margins.
Global factors are also contributing to higher prices. Tariff-related trade issues involving Brazil, alongside parasitic cattle infections in Mexico, have disrupted cross-border supply flows and tightened availability. Analysts warn that even with improved weather conditions, rebuilding the US cattle herd is likely to take at least three years, meaning price pressure could persist well into the medium term.
Source: CNBC – “Beef prices are soaring. Here’s why that’s hard to fix”
Date: 07/12/2025
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