It’s funny how the answer for high prices is always some excuse that sounds like the industry couldn’t possibly survive without record profits.
Summary: Mostly because droughts in the places that raise beef have forced ranchers to sell off their herds (so supply is less than demand), but also because of grain prices and tariffs. Cattle are slow-growing so prices are expected to stay high for a few years.
Since this news is coming from CBS i’d just as likely think it was price-gouging.
Who cares? People that are eating beef in 2025 need to seriously reconsider their impact on animal welfare and the environment.
Part of me thinks, “Good. Beef should be expensive; the industry is cruel and terrible for the environment.”
A smaller part of me thinks, “I guess now is the time to indulge in steak.”
If you graph the prices of beef each year from 1960 to today, the prices goes up except for 2 years. One was the result of over supply do to coming out of the late 80’s after reducing herds and getting back to normal coupled with a reduction in demand (less beef in the 80’s - healthy diet ideas), and the second was a lower demand from foreign markets coupled with cheaper feed.
But the trend is clear: its going up, and it isnt going to come back down, at least not for long.
The angle of the chart gets steeper each decade as well.
Your points are correct, but inflation is the main cause and S&D is a small contributing factor.
Price of beef in 1950 for ground was $0.35-0.50 Price of ground beef today is $5.60-7.69
Inflation: $1 in 1950 is around $13.68 today.
$1 got you 2-2.85lbs of ground beef in 1950, $13.68 gets you 1.77-2.44lbs of ground beef today. The .23-.56lbs($1.288-4.03) difference comes from the supply issues you raised along with foreign exports that only tariffs or trade embargos would curb. As per 2022 figures, the US exports 1.29 million tonne of beef, imports 1.86 million tonne and consumes around 12 million tonne. That 0.57m tonne E/I difference is where the S ain’t meeting the D.
Inflation aka price gouging corpos
Inflation isn’t caused by corpos increasing prices. Increasing prices are the result of inflation, in a sane economy.
Inflation is a result of federal monetary policy and fractional reserve currency, and to a degree due to economic conditions outside of control plus government intervention. An example is certain subsidies taking up demand shortfalls and the supply not adjusting to market conditions fast enough.
COL increases without inflationary factors are price gouging corpos, like the idiosyncratic rise in rent and house prices.
If you want to see some wild inflation, magic wand away illegal immigrants and the economy crashes hard as prices go through the roof and sectors of the economy fail, plus side is housing prices also crash… So that’s nice?
An aggressive progressive tax on high income “earners” and corporate profits without inane tax avoidance schemes would lower inflation, but you have to balance and phase it in so inflation isn’t negative for too long or bad stuff happens with loans and bonds.
What about imports?
