Breakfast is starting to become affordable once again as egg prices have finally seen price drops, but if you’re thinking of firing up the grill, you might want to check your savings account first.
Beef prices are hitting new record highs. The Department of Agriculture shows that since January, the average price per pound has jumped 9% to $9.26. Over the past year, steak prices are up 12.4%.
Hamburger’s not much better off. The price of ground beef is up 10.3% in the past year.
Demand has remained high while herds have been shrinking—hitting their lowest levels in 74 years. Feed prices are higher and Imported beef is costing more as well.
Egg prices spiked due to avian flu concerns, which resulted in the slaughter of millions of chickens and a subsequent shortage of domestically produced eggs. Chicken populations eventually started to recover from the slaughter, though, which increased the supply, bringing costs back down.
It won’t be that easy with beef.
While herd sizes can grow, it takes longer for a cow to mature—and the rising price of feed isn’t expected to decline anytime soon, meaning it costs a fair bit more to raise the cattle. Imports, meanwhile, are likely to be subject to tariffs moving forward, and those make up about 8% of U.S. beef consumption.
The best chance for a price drop is the scenario everyone wants to avoid. If household incomes drop to the point that beef becomes a luxury, prices will decline, but that will also hurt farmers, whose incomes are already perilous.
