Cattle supply drops to historic low, raising concerns over steak prices
- The American cattle supply is currently at its lowest level since 1951, resulting in soaring prices.
- Major meat producers are maximizing meat extraction from cattle to cope with supply issues.
- Consumers can expect to see rising beef prices at the grocery store due to this ongoing shortage.
In the United States, cattle supply has dropped to the lowest levels since 1951, according to the U.S. Agriculture Department. The recent cattle count at the start of 2025 revealed that the population has fallen to approximately 28 million. This significant decrease in supply is attributed to factors such as drought and high feed prices, which historically contributed to reductions in cattle herds. As a consequence of this shortage, cattle prices have risen sharply, driving up the costs for consumers at grocery stores. The situation has also led to record prices in cattle markets, especially noted in Chicago where prices in January were nearly 20% higher than two years prior. Various cuts of beef, including rib, loin, round, and flank, have been directly affected by the supply crunch. With ongoing concerns about availability, major food brands like Tyson Foods, JBS, and Cargill are attempting to maximize the yield of meat obtained from each head of cattle in order to sustain their operations and meet consumer demand. In light of the supply issues, meat processing plants are working overtime to extract as much meat as possible from each animal. The process of deboning, referred to as the