Skyrocketing beef prices lead to uncertainty for farmers and consumers: 'There's a lot of unknowns'

It's no surprise that grocery prices have been greatly affected by inflation. While the cost of eggs is on the minds of a lot of Americans, beef is another category that Americans consume like no other country. The average American consumes 82 pounds of beef per year, compared to the global average of 19.8 pounds, per Sentient Media.

What's happening?

The price of beef, specifically sirloin and ground beef, stayed relatively consistent since the U.S. Bureau of Labor Statistics started tracking it in the 1980s — that is until the summer of 2020. This increase in demand during the pandemic caused the first spike in prices and has been going up ever since, as relayed by NerdWallet.

Sirloin steak hit $11.97 per pound in January, a few cents lower than its November 2024 numbers. Ground beef is currently averaging at $5.55 per pound, down from $5.67 in November. The November numbers were record highs.

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While the consumer price index is showing a slight deceleration in inflation — only 2.5% higher than January of last year — beef and veal went up 5.5%.

The rise of beef prices is caused by farming operating costs, feed costs, rising interest rates for bank loans, and high grain prices.

Why are rising beef prices important?

Beef is the leading cause of deforestation, responsible for 41% of global forest loss, The Humane League reported. Over a 20-year period, the methane released from the livestock is 86 times more potent than carbon dioxide that's trapping heat in our atmosphere.

The increase in beef prices will force farmers to choose a strategy: downsize and gradually transition to other climate-friendly crops, or invest in the market to hopefully pull the costs down over time. 

American Farm Bureau Association economist Bernt Nelson told NerdWallet, "The real question will be, are we seeing some exhaustion? Will these consumers start to change over to cheaper substitutes? There's a lot of unknowns surrounding that."

What's being done about rising beef prices?

Currently, the beef industry is at a standstill with its pricing. With rising interest rates, it's more expensive to invest in livestock, and it's causing consumer frustration. If farmers want to transition to more climate-smart practices, they can ask for assistance via the Inflation Reduction Act and Farm Bill signed by the Biden administration. 

American consumers also have a choice. They can start eating less beef, or transition to a vegan or vegetarian lifestyle. Considering one American dies from cardiovascular disease every 33 seconds, per Sentient Media, there are big advantages to reducing meat intake. Luckily, there are dozens of meat substitutes — such as Beyond Beef, Impossible Burger, and Gardein — to stock your upcoming summer barbecues.

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