Ground beef prices have hit a record high this year, with their highest average price on record in May at $5.98 a pound, per the Bureau of Labor Statistics, reported in The New York Times. May’s cost was reportedly 16.2% higher year over year than May 2024.

“Other cuts of beef, including sirloin steaks and chuck roast, also reached record highs in the first half of 2025. … The number of beef cattle in the United States is down to 27.9 million, a 13% decline since 2019, and the overall cattle inventory is the lowest it has been since 1952, according to the Agriculture Department. Consumer demand has remained steady in recent years,” wrote the outlet.

The main causes for these price increases include smaller herd sizes due to a cattle cycle that includes droughts and processor closings.

The average beef herd consists of 47 cattle, according to 2022 Agriculture Department data. Large cattle farms (with 100 or more cattle) make up 10.5% of all beef operations.

The Times reports that some big box retailers are becoming more involved in the supply chain. “Grocers like Costco and Walmart are becoming more involved in the entire chain of meat production. Walmart has invested in a Nebraska slaughterhouse, and on Monday opened its first owned and operated meat packaging facility in Olathe, Kan. A Walmart spokeswoman said the new facility would help ensure a consistent supply of beef to its stores.”

According to the report, ranchers are beginning to rebuild their herds to take advantage of the high prices. But it is a slow process, as it takes two to three years to raise a calf to slaughter, meaning beef prices are likely to remain high for the foreseeable future. The Agriculture Department estimates that the price for cattle will remain high into 2026, with retail beef prices remaining elevated for several years.

In December 2024, NACS Daily reported on how the increasing cost of beef has led QSRs to learn further into new chicken innovations.