Beef prices remain high amid declining cattle supplies

Beef prices remain elevated due to tightening cattle supplies and sustained consumer demand. As of July, the average monthly retail price for fresh beef products was $9.63 per pound, which is 31% higher than the five-year historical average for August.

Beef production in 2026 has seen a decline of 5% compared to the same period in 2025. This decrease is driven by a reduction in the number of cattle being processed, specifically a 5.6% drop in steer slaughter and an 11.2% drop in heifer slaughter. While the retention of heifers is intended to support long-term herd expansion, it is expected to cause a short-term decrease in beef production until more calves enter the market.

Retail prices are influenced by several factors, including the specific cut of meat, USDA quality grades such as Prime, Choice, or Select, processing methods, and geographic location. While prices have dipped slightly from an April high of $10 per pound, they remain significantly higher than previous years.