US beef prices stay near record highs as cattle herd hits 75-year low
Updated
Updated · Bloomberg · May 5
US beef prices stay near record highs as cattle herd hits 75-year low
12 articles · Updated · Bloomberg · May 5
Ground beef averages nearly $7 a pound, and the Jan. 1 herd was the smallest since 1951, with little sign of a meaningful rebound this year.
Drought, high feed and financing costs, and ranchers selling animals early have tightened supplies, while demand remains resilient and keeps grocery prices elevated despite some imported beef easing pressure.
Meatpackers are under antitrust scrutiny but have reported losses as scarce cattle squeeze margins; rebuilding herds will take time, and blocked Mexican imports have further limited supply.
A deadly screwworm has halted cattle imports. How long can the US beef supply withstand this disruption?
The US cattle herd is at a 75-year low. Will a steak dinner become a luxury item by 2028?
With ranchers facing bankruptcy despite record cattle prices, who is truly profiting from the beef crisis?
Record-Low Cattle Inventory and Surging Beef Costs Threaten U.S. Market Through 2030
Overview
In early 2026, the U.S. cattle industry faces a historic low in herd size due to persistent drought, high input costs, and disease threats, which forced ranchers to liquidate breeding stock and limited herd rebuilding. This shrinking supply has driven beef prices to record highs, causing consumer shifts toward alternatives and prompting increased beef imports, including a new trade agreement with Argentina. Meat processors like Tyson Foods are struggling with losses and capacity cuts amid tight supplies. Despite industry innovations and policy efforts to support recovery, ongoing environmental and economic challenges mean meaningful herd growth and price relief are unlikely before 2028, with high prices and market pressures expected to persist through the decade.