Rising Beef Prices: Why the Herd Is Shrinking and Costs Are Soaring

The price of beef has jumped faster than most other grocery items, climbing 15 % over the past year.
Ground beef is hitting record highs, while chicken and milk prices stay flat or barely rise.

1. Why the Beef is So Expensive

• Shrinking Cattle Population
• The U.S. herd is the smallest it has been since the 1950s.

• Drought and higher production costs—especially interest rates—make raising cattle expensive.

• Ranchers’ Strategy

• Instead of keeping animals to grow the herd, ranchers sell young cows for slaughter and pocket higher prices.

• Long‑Term Shortage
• Even if the U.S. were to grow its herd, it would not reach stores until 2028.
• Consumers will feel the impact for years.

2. Voices from the Field

• Brandi Buzzard (Kansas) – “We’re making money now, but equipment and land costs are rising.”
• Kacie Scherler (Oklahoma) – “The business is ‘extremely fragile’ because operating expenses have surged.”
• Patrick Montgomery (KC Cattle Company) – “Calves now cost up to $1,500—much higher than five years ago. The market is in disarray.”

6. Bottom Line

A combination of drought, high costs, supply chain challenges, and political pressures is driving beef prices higher. The shortage of cattle will likely keep the market tight for several years, leaving consumers to pay more at the grocery store.