Beef prices in the United States have climbed so high that the issue is now political. President Donald Trump has promised to reduce grocery costs, but beef inflation is working against him.
This week, he urged ranchers to lower cattle prices. He also suggested importing more beef from Argentina to increase supply. Ranchers reacted with anger, saying his plan would hurt them and would not reduce store prices in a meaningful way.
Shrinking Herds, Higher Prices
The United States has the smallest cattle herd in nearly 75 years. More than 150,000 ranches have disappeared since 2017. Drought, expensive feed and equipment, and pressure from large meat processors have forced many out of business.
Beef prices have risen far faster than other food:
- Ground beef is up almost 13% in one year
- Steaks are up more than 16%
- General food inflation is just 3.1%
Experts say prices may stay high for years because it takes a long time to rebuild herds.
Anger at Trump’s Import Idea
Trump’s proposal to buy more beef from Argentina was sharply criticized, even by producer groups that often support him. They say only large meat companies would benefit, not consumers.
“The big packers win. Ranchers lose. Prices won’t fall,” said Justin Tupper of the U.S. Cattlemen’s Association.
Ranchers also blame extreme consolidation. Four firms control over 80% of beef processing. Critics say these firms push down the price paid to ranchers while charging more in stores.
“Broken Market” and No Quick Fix
The U.S. Agriculture Department announced a plan to open more land for grazing and support small meat processors. Ranchers welcome some of these steps but say they do not solve the core problem: lack of fair competition.
Many ranchers say they will not rebuild their herds until market power is addressed. “You’d be a fool to get into cattle without fixing the market first,” said rancher Mike Callicrate.
Economists warn there is no easy solution. High demand, low supply, and structural weaknesses mean beef prices will likely remain high through the decade.
