Source: Fortune
Summary
The average price of a pound of ground beef in the US has hit a record high of $6.90, up 19% from last year. Despite the country having an abundance of meat, domestic economics are working against the popular protein source. The US cattle population has declined to its smallest count since 1951, due to frequent droughts, heatwaves, and rising feed costs. Strong demand for beef has kept prices high, and Americans may need to get used to high prices as the cattle herd is not expected to expand again until 2028.
Our Reading
The numbers tell one story.
The US is awash with meat, but economics are against beef. The country’s cattle population has shrunk due to droughts, heatwaves, and rising feed costs. Beef consumption has held steady, despite high prices. The price of ground beef has hit a record high. The cattle herd is not expected to expand again until 2028.
Beef is a price inelastic protein, meaning demand will fluctuate less even as prices rise.
Author: Evan Null
