“I’m not a vegetarian, but I eat animals who are.” — Groucho Marx
The average American consumes nearly 60 pounds of beef per year, roughly equal to 120 8-ounce sirloins or nearly five quarter pounders per week. That is becoming increasingly costly as beef prices surge to record levels.
Ground beef prices reached an all-time high in September, according to the Labor Department, up nearly 13% over the same period last year. Steak prices rose 17%, and the cost of a pot roast is up over 18%. And industry experts say there is little hope for significant respite any time soon.
The primary factor in explaining the high cost is the classic intersection of supply and demand. The great American cheeseburger is a sacred cow, and consumers have been willing to pay up despite the drain on their wallets, while U.S. beef production has reached a multi-decade low due largely to climate change. Higher input costs like labor, feed and equipment are also pushing prices higher. Add in the additional cost of higher tariffs on beef imported into the U.S. supply chain, and you have something of a perfect dust storm.
The supply of beef cattle ebbs and flows in response to economic incentives perceived by producers. Ranchers look to expand their herds during periods of greater profits and contract their operations when costs are high. However, these adjustments take place over a relatively long period referred to as the cattle cycle, generally around eight to 12 years.