All articles tagged with #beef prices
The U.S. has restarted a border crossing for Mexican cattle to help ease record-high beef prices, but economists say the impact will likely be small and slow due to a shrinking U.S. herd, ongoing supply constraints, and a phased reopening with strict health checks.
Economists say reopening the US border to Mexican cattle is unlikely to immediately reduce high beef prices. The US cattle herd remains small after years of drought and low prices, and rebuilding herds will take years even with a phased border reopening and strict animal-health checks. Processing plants are operating below capacity, further constraining supply as officials contemplate a measured restoration of cattle imports from Mexico.
President Trump announced a 90‑day plan to import 300,000 metric tons of ground beef with lower tariffs to ease rising prices, claiming it could lower costs for families. The Iowa Cattlemen's Association is disappointed, arguing the move undercuts domestic producers amid a 75-year low in U.S. beef supply and high input costs. Officials say any relief for consumers could be temporary, noting it will take years to rebuild the herd even if prices dip in the short term.
Tyson Foods is closing two facilities (Illinois and Utah) and selling a Washington plant, with hundreds of layoffs, amid a 75-year low in cattle supplies. Economists say these closures won’t meaningfully lower beef prices soon because the U.S. has excess processing capacity and beef demand remains strong; the broader price trend is driven more by demand and inventory levels than Tyson’s actions. In the longer run, closures could influence producer decisions and industry capacity, but immediate meat prices are unlikely to be affected.
Trump plans to suspend duties on 300,000 metric tons of imported beef for 90 days to lower prices before the midterms, but ranchers and several GOP lawmakers warn the measure won’t quickly reduce prices and could hurt domestic cattle producers, making it a risky political gamble.
The White House plans to sign an executive order within two weeks to boost the U.S. beef supply by importing lean beef trimmings for ground beef, with about 300,000 metric tons — roughly 3% of annual consumption — expected from Argentina and other suppliers; supporters say it could ease prices, but economists warn the impact may be modest and could fail to curb cattle-inventory declines due to higher imports.
Beef prices in the US remain elevated near historic highs, helping push overall food-inflation and prompting shoppers to buy less beef or switch to cheaper proteins like chicken. A Circana survey shows beef volumes down about 0.3% in the 13 weeks through mid-July, even as national ground-beef prices hovered around $7 per pound and individual stores reported prices near $8 in some places. While imports from Mexico and Argentina and plant closures by Tyson hint at some relief, industry observers say the downturn in demand is gradual and relief will not be immediate, with many households still feeling stretched.
Beef prices are rising due to a persistent cattle shortage, even as demand remains mixed, squeezing Tyson Foods’ profits. Tyson cut its profit outlook after reporting a $707 million beef-division loss over the last nine months, with beef volumes down 15.9% and prices charged up 12.1% in the latest quarter. The U.S. cattle herd remains near all-time lows, though it’s starting to edge higher, and a potential reopening of Mexican cattle imports could help later, but won’t immediately close the gap in beef losses.
A half-century high in grocery prices is forcing Americans to rework shopping and meals: people coupon, compare stores, switch brands, and cut back on meat and nonessential items as at-home food costs rise about 33% since 2019; ground beef costs have surged roughly 79% since 2019 with a pound around $6.82 in June; factors include pandemic-related supply chains, droughts, bird flu, tariffs, and energy costs, plus geopolitical turmoil; experiences vary by city and income, with many households turning to discounts, food banks, or SNAP for relief, while wages have risen only modestly relative to prices.
The New World screwworm has reappeared in the United States and targets living tissue in livestock, but public health officials say it does not threaten food safety—meat is still considered safe thanks to veterinary care and strict inspection; the bigger impact is economic, with potential billions in damage to the southwestern US and potential higher beef prices, since infestations affect livestock health and supply rather than the safety or quality of meat already in the food chain.
Beef prices remain near record highs due to the smallest U.S. cattle herd in decades, with ground beef up about 13% and steak up 16% from a year ago; yet demand is resilient, highlighted by roughly $352 million higher Fourth of July beef sales and a shift toward premium, quality-labeled cuts. NielsenIQ notes consumers view steak as an affordable luxury and seek quality and sourcing claims, while retailers and restaurants report sustained demand for premium beef. Rebuilding the herd could take years, limiting near-term price relief.
JBS USA is closing its Philadelphia and Memphis beef plants, eliminating about 2,000 jobs and absorbing the facilities into other operations as part of a broader efficiency and modernization push. The move comes amid rising beef prices and a consolidation strategy, with JBS continuing to account for a large share of U.S. cattle slaughter. Pilgrim’s Pride is also shifting some chicken production to Ellijay, Georgia, investing $75 million and affecting 348 jobs. The closures’ impact on beef supply and pricing remains to be seen, as the company emphasizes long‑term growth and competitiveness in the U.S.
Texas’ beef industry faces a multi-front squeeze: the screwworm outbreak raises containment costs and risk to herds, while drought, wildfires and inflation push up inputs and logistics costs; together with tariffs and a consolidating meat-packing sector, ranchers, processors and barbecue joints are seeing higher costs and shrinking margins even as beef prices remain elevated.
The USDA is preparing a $1 billion-plus program to eradicate screwworms in the United States after the first U.S. case surfaced in Texas, with 12 confirmed cases mostly among cattle. Beef prices are already high amid a drought-depleted herd, and the outbreak could worsen prices. Politically, Trump officials fault the Biden administration and immigration policy for the spread, while Democrats tie funding cuts to the response; if more detections occur, the pest could become a broader political risk for Trump and the GOP.
A New World screwworm outbreak near the Texas–Mexico border threatens Trump's bid to lower beef prices before the midterms, with potential billions in losses if it spreads. The USDA has quarantines and is releasing sterile flies to curb the pest, but containment is hampered by having only one North American sterile-fly facility (Panama) and a Texas plant not online until 2027. Beef prices are already high (ground beef ~ $7/lb, steak ~ $13/lb), and industry officials warn that the pest could keep costs elevated for farmers and shoppers.