Beef prices in the United States have seen a significant increase, drawing public attention, including from prominent figures like Mark Cuban who recently questioned the reasons behind the high costs on social media. This surge is primarily driven by a historically low national cattle inventory and persistent strong consumer demand. The U.S. Department of Agriculture (USDA) reported that beef and veal prices were 10.6 percent higher in June 2025 compared to June 2024.
The American Farmers Bureau Federation (AFBF) indicated that the U.S. cattle and calf inventory at the start of 2025 was just under 87 million, marking the lowest level in nearly 75 years. This contraction in the cattle herd, a cyclical phenomenon exacerbated by factors such as drought conditions in key cattle-producing regions, has severely limited the supply of beef available to the market. The industry has struggled to rebuild herd numbers, leading to tighter supplies.
Despite the escalating prices, consumer demand for beef remains robust. Analysts note that consumers have shown a continued willingness to pay higher prices for beef products, even as overall food inflation impacts household budgets. This sustained demand, coupled with the reduced supply, creates upward pressure on prices at both the wholesale and retail levels.
Rising production expenses for farmers also contribute to the higher costs passed on to consumers. The USDA's Economic Research Service (ERS) forecasts continued increases in beef and veal prices throughout 2025, with predictions ranging from 5.4 to 12.7 percent. Industry experts suggest that these elevated prices could persist into 2026 and beyond, as the cattle cycle points towards further tightening of inventory numbers and a decline in beef production.