Beef has never been this expensive: Here’s what experts say is driving up the price

US shoppers will have noticed how some items in their shopping basket are much more expensive than they were a year ago. The price of beef is 34 percent higher than it was this time last year, and nearly 50 percent higher than 2020. That increase has been passed down to consumers.

Why are beef prices going up again in 2025?

A combination of factors have contributed to the price rises. The production cost of rearing cattle is more expensive - the price of feed, land have shot up, as have wages and borrowing costs.

Then there is increased demand, both domestically and overseas - even though buying beef at the supermarket costs more, more people are buying red meat. Recent droughts also played a part - as feedstock was reduced, many ranchers resorted to selling their beef cows.

And there is other factors. According to the latest data issued by the United States Department of Agriculture (USDA), beef production is estimated to be lower than forecasts. US Beef production has only dipped under the 25 billion pound-mark four times in the last 25 years (2005-5, and 2014-15). This year’s forecast has been lowered to 26.358 billion pounds, and the 2026 forecast raised to 25.275 billion pounds.

Cattle shortage

Some observers note another reason why beef prices have shot through the roof - a shortage of cattle with replacement heifers now more costly to rear. Bulls are also in short supply, which has subsequently pushed up prices at auctions and national markets.

The USDA’s most recent inventory of all cattle and calves in the United States, dated January 1, 2025, shows a total of 86.7 million head - 1 percent below the 87.2 million head on January 1, 2024. Beef cows, at 27.9 million head, were down 1 percent from a year ago - a trend that started several years back.

So could we see the beef market tank over the next 12 months? Demand is currently so high that it seems unlikely. But for those who want a regular source of protein in their diet and balk at the price of beef, the good news is that poultry and pork prices, the cheaper alternative to beef, have remained stable.

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