Beef: It is What’s for Dinner — If You Can Afford It – Tyson Meals (NYSE:TSN)

Simply as egg costs come down, the price of beef has risen sharply over the previous 12 months to succeed in all-time highs in 2025. Here is a have a look at why beef is the most recent merchandise driving grocery payments greater. 

The Particulars: The typical value for a pound of floor beef climbed to $6.12 in June, up practically 12% from a 12 months in the past and marking the primary time floor beef has climbed above $6 per pound since recordkeeping started. Steaks averaged $11.49 per pound, additionally up by round 8% to 12% relying on the minimize. 

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The place’s The Beef? 

A number of the key drivers for hovering beef costs are shrinking cattle herds, drought circumstances, pricey feed and rising rates of interest. 

• The overall U.S. cattle stock is at its lowest since 1951, down about 8% from 2019 to 2025, and now stands close to 86.7 million heads, in keeping with SupplyChainBrain. 
• Persistent droughts have decreased pastures, sending feed costs and manufacturing prices greater.
• The U.S. briefly suspended cattle imports from Mexico in Might because of a parasite outbreak and a 50% tariff on Brazilian beef imports, which begins Aug. 1, might additional prohibit provide and maintain costs elevated.
• Excessive rates of interest and chronic financial challenges have raised prices all through the provision chain. 

One of many largest beef processors, Tyson Meals, Inc. TSN CEO Donnie King mentioned on the corporate’s most up-to-date earnings name that “beef is experiencing essentially the most difficult market circumstances we have ever seen.”

Shopper demand stays sturdy as People proceed to buy beef, regardless of the record-high costs, in keeping with the American Farm Bureau Federation. 

Nonetheless, corporations like Hormel Meals Corp. HRL may benefit from elevated pork and hen gross sales if American customers make a flip away from beef. 

Different protein corporations corresponding to Past Meat, Inc. BYND and Not possible Meals might see oblique advantages from the excessive price of beef if customers search for different substitutes. 

What’s Forward: Specialists warn that this could possibly be just the start of a prolonged interval of tight provide and elevated beef costs. 

Patrick Montgomery, CEO of the Kansas Metropolis Cattle Firm, advised Axios that the most recent value will increase have been “simply the tip of the iceberg.”

“Costs for beef will proceed to be tumultuous for the subsequent two to 4 years,” Montgomery added. 

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