In two weeks, many Americans will roll out the grill on Memorial Day weekend as the summer grilling season gets underway. This year, many will be greeted by sticker shock when they head to the grocery store or butcher, as beef prices are soaring to record levels.
What are the important cattle supply figures?
Experts say the key reason for the price increase is that the number of beef cows in the U.S. has fallen. The USDA reported earlier in 2025 that the total national cattle herd numbers about 86.7 million, down from 87.2 million in January 2024, with beef cows also down by 1% from a year ago to 28 million. It’s the lowest level of cattle inventory since 1951. The Wall Street Journal reports that drought conditions across cow pastures in the U.S. have hindered producers’ ability to increase their herds. Dairy and breeding cows are now being used to increase the supply.
Imports from Mexico suspended due to concerns about a parasite?
Alongside lower numbers of beef cows, another blow to the beef industry came on Sunday, May 11. Agriculture Secretary Brooke Rollins suspended imports of live cattle, horses and bison at the southern border due to the spread of a flesh-eating parasite called the New World screwworm in Mexico. The parasite was found in the Veracruz area, which is about 700 miles from the U.S. border.
Rollins stated, “It is my duty to take all steps within my control to protect the livestock industry in the United States from this devastating pest.”
The parasites are fly larvae that reportedly can burrow into the membrane of a full-grown cow and cause an infection that can possibly kill the animal within two weeks. Rollins’ directive stated that the suspension will stay in effect on a month-by-month basis, being revisited if conditions change in Mexico and the possible outbreak is contained. The agency says it will work with Mexican authorities to see the outbreak stopped.
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The price of beef has been steadily rising over the last year, with ground beef up 13%. The U.S. Department of Agriculture has now suspended imports of live animals from Mexico due to an outbreak of New World screwworm.
How much higher are beef prices?
The Journal report indicates that retail prices and beef cutout prices are not only rising, but prices are not expected to ease in the coming months. Hamburgers, steak and ribs are among the beef products that are becoming more expensive. For instance, the average cost of ground beef has risen 13% over the past year, according to the report.
How have companies been affected?
On the business side, Tyson Foods reported a $258 million loss in beef operations in the second quarter of 2025, citing challenging market conditions. The company is now shutting down some of its beef-packing operations in order to cut costs. In addition, workers at meat processing plants are processing as much meat as possible. As Straight Arrow News reported in April, workers are making the most of the meat that they do have, sending bones with meat on them to other parts of the plants, where that remaining amount can be salvaged and used for ground beef.
Some producers are also setting aside breeding cows in an effort to rebuild herds. However, it takes up to two years for a calf to grow to the size of an animal that is ready for harvesting.
Livestock trader Dan Norcini told the Journal, “To me, the entire cattle thing has to do with demand at this point. Will consumers continue to pay up for high-priced beef or not?”
