The Indicator from Planet Money Why beef prices are so high
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Sep 15, 2025 Beef prices are skyrocketing due to solid demand but falling supply. A rancher in Wyoming shares how rising costs affect his livelihood. The discussion reveals the impact of drought, parasites, and the cattle cycle on production. Insights from the Federal Reserve highlight the cultural significance of beef, especially in Texas. Additionally, perceptions of quality in global beef markets are shifting, with surprising acceptance of American beef in Australia. This deep dive uncovers the complexities and challenges facing ranchers today.
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Import Restrictions Had Immediate Supply Impact
- The suspension of Mexican cattle imports to prevent New World screwworm directly removed supply from the U.S. market.
- That policy action tightened supply quickly and pushed cattle prices up nationwide.
Supply And Demand Drive High Beef Prices
- Beef prices are high because demand remains solid while U.S. production has declined.
- Reduced imports from Mexico after the New World screwworm suspension tightened supply further.
Long-Term Herd Decline Raises Import Reliance
- U.S. cattle inventory has trended down for decades and recently fell faster due to drought and higher feed costs.
- Import reliance grew to fill domestic shortfalls, making U.S. supply sensitive to border disruptions.