Here’s why beef prices are at record high

At the New York burger restaurant Au Cheval, the “classic” double cheeseburger goes for $25.99. In Omaha, Everett’s offers a mushroom Swiss burger for $12.25. In Los Angeles, the double-double combo at some In-N-Out locations runs as high as $11.44.

These prices reflect a harsh reality for fans of one of America’s favorite meals: the cost of beef is at an all-time high.

The average retail price for a pound of ground beef in May was $5.98, according to the Federal Reserve Bank of St. Louis, which analyzes data from the Bureau of Labor Statistics. That price is 16% higher than a year earlier, 34% more than in May 2020 and 44% more than a decade ago. Beef prices have significantly outpaced inflation for at least 10 years, government data shows.

The economics of beef

A basic principle of economics – the law of supply and demand – explains the price increase. Americans want more beef, but its availability has dwindled.

“There’s plenty of alternative protein sources in terms of pork and poultry, primarily in the U.S., that consumers could turn to that are in abundant supply and relatively cheaper,” Derrell Peel, an agricultural economics professor at Oklahoma State University, told CBS News. “And yet, beef demand has stayed remarkably robust.”

At the same time, the number of beef cows on American farms is at the lowest level since the 1950s, when fewer cows were needed to feed fewer people. According to the U.S. Department of Agriculture, the “beef cow inventory” peaked at about 45 million in the 1970s but had fallen below 30 million in 2024.

Farmers in many western states have culled their herds in recent years because of persistent drought. Without enough rain, their fields weren’t growing enough grass to feed the cattle, and buying supplemental feed proved too expensive.

This coincided with slower production by meat processors during the COVID-19 pandemic, followed by the closure of several major meat packers, according to The New York Times. Several large purchasers of beef, such as McDonald’s, have sued meat processors, claiming they colluded to boost prices, the Times reported. The processors denied the allegations.

Get used to high prices

Raising a calf to slaughter typically takes 14 to 20 months, so rebuilding a herd is a slow process. Grass-fed cows take even longer to mature.

The Agriculture Department predicts beef prices to continue to rise through 2025. So get used to higher-priced hamburgers, not to mention steaks, roasts and briskets.

“We’re going to be in a tight supply situation, in an elevated price situation for the next two to three years,” Peel, the Oklahoma State professor, told CBS, “probably to the rest of the decade.”