Beef prices surge as drought drains cattle supply and costs soar

US beef prices have hit record highs due to a shrinking cattle supply from drought and disease. Ranchers face sharply higher input costs (fuel, fencing, hay). Feedlots are paying top-dollar for calves, while the big meatpackers struggle with losses because they must buy cattle at record prices and operate with capacity constraints. Retailers and restaurants can’t fully pass costs to customers, so profits across the chain remain slim. Relief isn’t expected for years, until more cattle reach market.