Meat Prices Stay High as Cattle Supply Drops Nationwide/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Meat prices in the U.S. remain elevated as cattle herds hit historic lows, the smallest since the 1950s. Omaha Steaks CEO Nate Rempe says it will take about a year to rebuild herds and ease price pressures. Tariffs and trade disruptions further complicate recovery, though optimism remains for a 2026 market rebound.
Meat Prices and Cattle Supply: Quick Looks
- Cattle Herds at 70-Year Low: The U.S. cattle inventory has dropped to its lowest level since the 1950s, tightening meat supply.
- Price Surge Continues: Steak is up 7%, ground beef 10%, chicken 3%, and ham 4% year-over-year.
- Industry Response: Omaha Steaks CEO expects herd rebuilding to take about 12 months, with market relief possible by Q3 2026.
- Tariff Troubles: New tariffs under the Trump administration are complicating meat imports from Canada and Mexico.
- Domestic Impact: High beef prices could trickle down to grocery aisles and strain restaurants and food producers.
- Ranchers Remain Resilient: Despite uncertainty, cattle producers urge calm and anticipate a longer-term market correction.
- Global Trade Strategy: Industry leaders support exports and better trade deals to boost prices and maintain competitiveness.
- Employment at Stake: The U.S. beef industry supports over 1 million jobs, making stabilization a national economic priority.
Deep Look: Meat Prices Remain Elevated as U.S. Cattle Herds Shrink to Historic Lows
Meat prices across the U.S. remain stubbornly high, with no immediate relief in sight, as cattle herds have declined to levels not seen since the 1950s. According to Nate Rempe, President and CEO of Omaha Steaks, rebuilding the nation’s beef supply will take time — likely into 2026 — as ranchers work to recover from years of contraction and ongoing trade disruptions.
Appearing on Fox Business’s Mornings with Maria, Rempe detailed how today’s tight beef supply is squeezing the market. “The number of head of cattle in the United States is at a low really not seen since the 1950s,” he said. “That supply pressure is really putting a lot of upward pressure on price, especially as demand is still so strong in the U.S.”
Prices Rise Across the Board
According to the Bureau of Labor Statistics:
- Steak prices have risen 7%
- Ground beef prices are up 10%
- Chicken has increased nearly 3%
- Ham prices climbed over 4%
These increases are affecting household budgets and pushing some consumers back to home cooking as a cost-saving measure.
Rempe emphasized that price pressures can’t be fixed overnight. “Supply is a tricky issue. You can’t just flip a switch or adjust a tariff. We need to rebuild the herd,” he said, estimating that recovery efforts will span the next 12 months.
Tariffs Complicate the Outlook
The Trump administration’s new tariffs on imported meat from Canada and Mexico — major beef and pork trading partners — have further tightened supply. While trade deals are being renegotiated, the impact of these tariffs is already being felt by consumers and processors alike.
The U.S. Department of Agriculture recently confirmed a multi-year decline in cattle numbers, reflecting a widespread pullback in production amid droughts, high feed prices, and regulatory hurdles.
Rempe, while voicing support for exports and stronger trade partnerships, called for a balanced approach. “Foreign buyers tend to pay more for beef, which helps the industry. But we do have to balance that with the domestic supply.”
Rancher Resilience and Recovery Timeline
Fifth-generation cattle rancher Steve Lucie echoed Rempe’s call for calm during these uncertain times. Speaking on America Reports, Lucie acknowledged the difficulty tariffs pose but framed them as a long-needed correction.
“We’ve been through so many ups and downs in our country, and especially in my industry,” he said. “Farmers and ranchers deal with price fluctuation daily. So, this doesn’t bother us.”
Lucie believes the current policies could pave the way for a fairer, more competitive U.S. beef market. “The American beef industry has been on the short end for a long time. This could be the beginning of rebalancing that.”
Wider Economic Stakes
The beef industry is a massive component of the American agricultural economy, supporting over a million jobs. Continued price hikes in meat could ripple through the food chain — from farmers to restaurants to consumers.
Consumer product companies like can manufacturers, grocers, and restaurants are already bracing for increased costs that may eventually reach shoppers. A $300 increase in the cost of beef per car — as estimated by Cleveland Cliffs CEO Lourenco Goncalves — may not be decisive in one industry, but in food retail, even a few cents per pound could shift consumer choices.
With many Americans still tightening their belts due to inflation, the sustained high cost of protein could trigger broader shifts in eating habits, food packaging, and retail demand.
Looking Ahead
Despite the challenges, Rempe believes that by late 2026, the beef market could begin to stabilize, assuming herd rebuilding proceeds without further disruption from tariffs or weather-related issues.
“America loves beef,” Rempe said. “We just have to get the supply up to meet that demand — and we’ve got some work to do.”
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