Steak, chicken, and ground beef are more expensive this year, much more.
According to Fox Business, a sharp decline in cattle numbers juxtaposed with robust demand has propelled meat prices upward in the United States, a situation exacerbated by tariffs and trade policies.
Nate Rempe, CEO of Omaha Steaks, attributes the soaring prices to a stark reduction in cattle supply, the lowest since the 1950s, challenging the industry to meet ever-strong consumption rates.
According to the Bureau of Labor Statistics, essential meat staples have witnessed a notable price hike. Steak prices are up by 7%, ground beef by 10%, and even chicken and ham have seen increases of 3% and 4%, respectively.
Rempe suggests that the issue goes beyond tariffs and trade policies, hinting at a broader supply-side crisis in the meat industry. This complexity resonates in his statement, "That supply pressure is really putting a lot of upward pressure on price, especially as demand is still so strong in the U.S." The decline spans several years, as documented by the U.S. Department of Agriculture, affirming this is not just a reactionary blip but a persistent trend.
The Trump administration's recent tariffs are ruffling feathers in the meat market, affecting meat imports from neighbors like Canada and Mexico. These policies, while aiming to rebalance trade disparities, have introduced new stresses in the meat supply chain.
Rempe, critical yet hopeful, believes that stabilizing these policies and renegotiating trade deals could benefit the industry. He emphasized the value of exports, saying, "Foreign buyers tend to pay more for beef. That’s good for meat packers and for ranchers… but we do have to balance."
A strong domestic affection for beef compounds the challenge. "America loves beef, and you know that's something I definitely love," Rempe said. "But we have to have the supply to do that, and we've got some work to do."
Optimistic about the future, Rempe predicts a market recovery by the third quarter of 2026, anticipating that ranchers' efforts to expand their herds will gradually bear fruit. His expectation is rooted in the strategic adjustments currently underway across the industry.
In addition to industry strategists, frontline workers like Steve Lucie, a fifth-generation cattle rancher, also speak to the resilience required in the face of such market dynamics. Lucie advised his peers to maintain their composure, noting, "We’ve been through so many ups and downs in our country, and especially in my industry."
Lucie also sees the tariffs as a measure towards fairness for the American beef industry, despite the immediate challenges they introduce. "I don’t think any of us know what’s [going to] happen with these tariffs," he pondered. "But what we do know for a fact is that the American beef industry has been on the short end for a long time."
The beef cattle industry, supporting over a million jobs, faces a crucial period of recalibration. As ranchers and executives like Rempe work toward enhanced supply chains, the emphasis remains on sustainable growth and stable market conditions.
Rempe wrapped up his views with a clear focus on the path ahead: "Supply is a tricky issue. You can’t just flip a switch, adjust a tariff," he explained. "We need to rebuild the herd. And that’s [going to] happen over the next roughly 12 months."
With the clock ticking towards a hopeful stabilization, the industry remains poised on the edge, ready to adapt and overcome the supply constraints that have driven prices to their current highs.