Do you like burgers and steak? Then you may be out of luck. Beef prices have reached their highest in almost three decades, which is causing sticker shock for both consumers and restaurant owners.
We shouldn't be all that surprised. This particular phenomenon in the beef industry has been long in coming. There's been a decline in cattle supply while at the same time an increase in demands from both China and Japan, according to Time. The current price of United States of Agriculture (USDA) choice-grade beef per pound is $5.28. That's a 5.4 percent increase from the price just a year ago, according to Guardian Live.
Experts estimate that prices will likely stay high for a few years as ranchers rebuild their herds. The problem is that drought in the Southwest and parts of the Midwest caused cattle producers to cull their herds after they were unable to provide for their cattle. This, in turn, led to the current high prices.
Yet this is good news for ranchers; they've struggled with high feed prices for years, and the higher beef prices may actually help them recoup some of their losses, according to the Houston Chronicle.
"I've noticed a huge increase in price in all ages and grades of cattle," said Ray Law, owner of the Law Ranch and Cattle Company, in an interview with the Houston Chronicle. He's found that for 600-weight calves, there's been a jump of almost 50 cents. "Demand is very strong," he said.
While in the short run ranchers may benefit, though, there's some concern that consumers may change their buying habits. Since the rise in beef prices is expected to last several years, it's possible that consumers may rely on chicken or pork for their meat-inspired meals, according to Guardian Live. This could permanently change the market. In addition, fast food restaurant chains like McDonald's are also liable to be affected with the rising prices of beef.
