Beef prices across the United States have climbed to unprecedented highs this summer, with no clear sign of relief in sight. July 2025 marked the second consecutive month of record-breaking costs, as the average retail price of ground beef reached $6.25 per pound—surpassing June’s record of $6.12.
Other beef cuts have surged as well. Choice beef averaged $9.69 per pound, all-fresh beef hit $8.90, USDA Choice boneless round roast sold for $7.91, and sirloin steak topped $13.55 in July. All of these categories rose from the previous month, reflecting tightening supplies and broad market pressures.
Why Prices Are Climbing
The spike in beef costs is the result of several overlapping challenges:
Shrinking Cattle Herds: The U.S. cattle inventory has dropped to its lowest levels in decades, following years of drought that forced ranchers to cull herds. Nationally, fewer calves are being born, limiting future supply.
High Input Costs: Ranchers face elevated expenses for feed, forage, fuel, and veterinary care, all of which are passed along the supply chain.
Strong Consumer Demand: Despite rising prices, demand for beef remains resilient, particularly during grilling season and holiday periods.
Import Constraints: Restrictions on cattle imports from Mexico due to livestock disease concerns, along with steep tariffs on Brazilian beef and other foreign supplies, have further strained the market.
Mississippi’s Situation
Mississippi’s herd numbers remain stable at about 810,000 head, including 430,000 cows and heifers that have calved, according to Mississippi State University Extension. But producers here still feel the strain of rising feed and forage costs.
“High beef prices are mainly driven by reduced national cattle inventories, which are at their lowest in decades due to drought-related herd reductions,” said Brandi Karisch, MSU Extension beef specialist. “Strong consumer demand and increased processing and transportation costs are also contributing.”
While rainfall has been favorable this year, the effects of earlier droughts continue to ripple through the industry. Many Mississippi producers sold off cattle during dry years and have yet to rebuild herds. Others, particularly older ranchers, are opting to exit the business altogether, cashing out while prices are historically high.
The Producer’s Dilemma
Producers still in the business face tough choices. Some are tightening management practices, focusing more on herd health and efficiency. Others are weighing whether to expand herds by keeping more heifers or to sell now while market prices remain elevated.
“Producers are dealing with high production costs, weather conditions varying from too dry or too wet, and heat stress on cattle,” Karisch noted. “They’re adapting by tightening management practices and prioritizing herd health.”
MSU agricultural economist Josh Maples expects beef prices to remain high well into 2026. He points out that cattle cycles typically last 10 to 12 years, and the U.S. is now at the low point of the current cycle. “The number of calves born in the U.S. has been declining for the past seven years, and we are likely near the cyclical low point in cattle production,” he explained. “We will likely begin to expand inventory over the next few years, but it will take a year or two after that for beef supplies to increase.”
Looking Ahead
For consumers, the squeeze means adjusting grocery budgets and, in some cases, turning to alternative proteins or smaller beef purchases. For producers, the high prices are both a blessing and a burden—profitable on the sales side, but costly to sustain.
While rebuilding efforts are slowly beginning in parts of the country, it will take several years before cattle numbers recover enough to significantly impact supply. Until then, shoppers and ranchers alike are likely to feel the weight of record-high beef prices every time they step into the grocery store or the feed lot.
