The average price for a pound of ground beef in the U.S. rose above $6 in June, marking the first time it's risen above that threshold since data collection began in the 1980s.

According to data from the U.S. Department of Agriculture, beef prices have jumped by 10.6% over the last year, while steak and ground beef prices have increased by 12.4% and 10.3% respectively. That's been fueled by a number of factors, as unseasonably dry weather, higher grain and feed prices, and rising interest rates have driven up costs for cattle farmers operating on "razor thin margins," the American Farm Bureau Federation (AFBF) said in a May market intel report. 

To manage those costs, cattle farmers have been gradually trimming the size of their herds for years, with U.S. cattle inventory falling from 94 million heads in 2021 to roughly 86.7 million in 2025. Today, U.S. cattle herds are at their lowest levels in 74 years. 

Conditions have been further complicated by lagging demand for U.S. beef exports, with total export sales down 22% year-over-year as of May. In a June earnings call, Tyson Foods CEO Donnie King warned that "beef is experiencing the most challenging market conditions we've ever seen," which the AFBF blames on a slowing of trade with China driven by tariffs.

Although demand for beef among U.S. consumers has remained strong, chaotic economic conditions could also change that at any moment, the AFBF said in May.

"When U.S. households are doing well, they buy more meat, particularly beef," it explained. "If consumer confidence falls alongside household financial uncertainty, demand for beef could be at risk, especially in the face of record high retail prices."