By Nathan Gregory
U.S. ground beef retail prices have broken their record highs two months in a row, and consumers may be waiting a while for relief.
The U.S. Department of Agriculture’s Economic Research Service reported an average ground beef price in July 2025 of $6.25 a pound. The previous record of $6.12 a pound was set in the previous month the first time the average had ever broken $6.
Retail values are also escalating in other beef cuts, including choice beef at $9.69 a pound, all-fresh beef at $8.90, USDA Choice boneless round roast at $7.91 and USDA Choice sirloin steak at $13.55 in July. Prices for each of those categories increased from June.
Mississippi State University Extension beef specialist Brandi Karisch said reasons for the high prices are overlapping and numerous. At about 810,000 head, including 430,000 cows and heifers that have calved, the state’s cattle-and-calf inventory is still solid and remained unchanged between 2024-25. Keeping herds well fed has been more difficult to achieve.
“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 Karisch, also a research professor in the MSU Department of Animal and Dairy Sciences. “Strong consumer demand and increased processing and transportation costs are also contributing.”
Consumers can also chalk up the high costs to a lack of rainfall -- not this year, but in recent ones. The effects of dry conditions in consecutive years extend well beyond their onset.
“While weather has been favorable with ample rainfall thus far this year, many producers in Mississippi sold out during the severe droughts we faced a few years ago and have not built back their herds,” Karisch said. “Record high prices have many cattle producers who are getting older choosing this year to exit the cattle business.”
Regarding record prices, beef producers still in the industry are in the same boat as their customers and have no choice but to pass the costs down to them to remain profitable. Input costs for feed, forage and health of the animals are also elevated.
“Producers are dealing with high production costs, weather conditions varying from too dry or too wet, and heat stress on cattle,” Karisch said. “They’re adapting by tightening management practices and prioritizing herd health.”
MSU Extension agricultural economist Josh Maples said while beef prices will likely remain high into 2026, historical patterns point to a climb in cattle production soon, which will eventually lead to prices leveling off.
Source : msstate.edu