Shrinking U.S. Cattle Herds Push Beef Prices to 1960s-Level Supply Lows

Ground beef cost $6.70 a pound in March, a 16% increase from a year ago. Beef steaks rose 16% to $12.73 per pound. These prices are driven by a supply shortage. U.S. cattle herds fell to less than 28 million in January, the lowest levels since the 1960s. Drought conditions in the U.S. and higher feed costs following the Russia-Ukraine invasion in 2022 forced ranchers to cull their herds. This created a gap where demand for beef has not diminished, while supply has shrunk. Diesel price spikes resulting from the Middle East conflict are expected to lift transportation costs across the agri-food supply chain, from grain transport for livestock producers to the delivery of processed beef to stores. The USDA estimates beef prices will climb between 10% and 18% in 2026.