Source: Fortune
Summary
Americans are showing signs of reaching their limit on beef prices, which have surged over the past two years. Beef sales volumes fell 0.3% in the 13 weeks ending in mid-July, a crucial period that includes Memorial Day and July Fourth. Consumers are shifting to cheaper proteins like chicken, and the shift suggests there may be a ceiling on what Americans are willing to pay for beef. The US has sought to ease pressure by importing more meat from countries like Argentina and resuming live cattle shipments from Mexico.
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The numbers tell one story. Beef prices have risen to near-record highs, but consumers are finally pushing back. Aaron Kaufman, a 32-year-old who moved from Brooklyn to Manhattan, switched from ground beef to chicken due to the higher cost. Chris DuBois, an executive vice president at Circana, said consumers are stretched and it’s not just about the price of food. The US cattle herd remains near its lowest level in over five decades, keeping beef supplies tight.
The announcement sounds familiar. Consumers are resisting further price increases, with average ground beef prices flat in July. The shift to cheaper proteins like chicken continues, with ample supplies keeping prices under pressure. The weaker beef volumes are especially notable during the summer grilling season when beef demand should be strongest.
The strategy enters a familiar phase. Beef processors like Tyson Foods are closing plants to reduce competition for scarce animals. The US has sought to ease pressure by importing more meat from countries like Argentina and resuming live cattle shipments from Mexico. However, the domestic herd remains near its lowest level in over five decades, keeping beef supplies tight.
Consumers are stretched, and it’s not just about the price of food. The price of life is hitting, putting pressure on total volume in the store. The shift to cheaper proteins like chicken continues, with ample supplies keeping prices under pressure. The weaker beef volumes are especially notable during the summer grilling season when beef demand should be strongest.
The numbers tell one story, but the reality is that consumers are finally pushing back against high beef prices. The shift to cheaper proteins like chicken continues, with ample supplies keeping prices under pressure. The weaker beef volumes are especially notable during the summer grilling season when beef demand should be strongest.
Author: Evan Null
