US beef prices hit record amid drought and wildfires

Ground beef in the United States reached a record $8.62 per pound in May, a rise of more than 12% from a year earlier, according to the U.S. Bureau of Labor Statistics. The surge is linked to a prolonged drought and extensive wildfires that have reduced pastureland and raised feed costs, forcing ranchers to cut herds and delay rebuilding. Economists say the domestic cattle supply is at its lowest level in 75 years, limiting short‑term market levers to increase supply.

Wells Fargo’s chief agricultural economist Michael Swanson warned that “there is no real lever to pull in the domestic market to get more supply in the short term.” The shortage has pushed the estimated cost of a typical July 4 barbecue for ten people up 2.4% to $161, with hamburger beef prices up 14%. Some shoppers are shifting to chicken or pork to manage budgets. Policy actions cited include former President Donald Trump’s push for low‑tariff Argentine beef imports and a DOJ probe into possible meat‑packer collusion, while a ban on Mexican cattle imports remains due to a screwworm parasite risk.