Here’s all the reasons for rising beef prices

A cyclone of geopolitical developments, supply pressures and seemingly unyielding consumer demand has been fueling beef prices to record highs.

The Food and Agriculture Organization of the United Nations said its meat price index reached a new all-time high in July, averaging 127.3 points, up 1.2% from June and up 6% from July 2024, due primarily to global bovine meat prices, which also were at record highs.

The average US price of 100% ground chuck in July was $6.34 per lb, up 16% from July 2024 and 27% higher than the most recent five-year average, according to the US Bureau of Labor Statistics. As a comparison, the price for 100% ground chuck from 2020 to 2024 only rose an average of 3.8% each year.

The upward trajectory in beef prices is not expected to reverse sharply any time soon, according to industry analysts.

“As high as prices are, I still think the risk is for prices to go up instead of down,” said Michael Irgang, president and owner of Global Risk Management, a firm specializing in commodity risk management for the food and agribusiness industries.

Irgang said there were several factors — both domestic and international — that have been supporting the price surge.

“It’s a perfect storm of a bunch of different things coming together at the exact same time,” he said.