Price of red meat

Red meat prices have surged during the current period due to a combination of supply-side challenges and rising production costs. Severe drought conditions, particularly in major cattle-producing regions, have reduced available pastureland and forced farmers to cull more cattle, shrinking herd sizes to their lowest levels in decades. At the same time, high grain and feed prices, driven by global supply disruptions and inflation, have made raising cattle more expensive, while rising interest rates have further increased the cost of financing operations for ranchers.

These supply constraints have coincided with steady or even growing consumer demand for red meat, both domestically and through exports. Despite higher prices, consumers have continued to purchase beef and other red meats, especially during peak seasons like summer grilling, which has helped keep prices elevated. The reduction in cattle inventory has not been offset by new herd growth, as high input costs and financial pressures discourage farmers from expanding their operations, leading to persistent tight supplies.

Additional factors have compounded these trends, including increased transportation, labor, and processing costs throughout the supply chain. Global events such as the COVID-19 pandemic and the war in Ukraine have contributed to broader food price inflation, while tariffs and trade policy changes have affected the cost of imported beef. As a result, the combination of reduced supply, high production costs, and resilient demand has driven red meat prices to record highs, a trend expected to continue until herd sizes recover and input costs stabilize.