Forget eggs, beef prices are soaring

Last August, then-candidate and former President Donald Trump promised to reduce the prices on everyday essentials on his first day in the Oval Office.

“When I win, I will immediately bring prices down, starting on Day One,” Trump said at the time, according to CNN.

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While there have been some improvements, the latest data indicated that prices continue to rise, primarily for necessities such as food and housing. Experts agree that the inflation rate in the U.S. over the last few years is the worst in decades.

The global pandemic started the surging prices show, due to lockdowns, disruptions in the supply chain, and everything in between. The challenge continues, and it is likely to increase due to new obstacles, such as tariffs.

Before the 2024 presidential election, inflation notably dropped but remained above pre-pandemic levels.

The consumer price index (CPI) increased 2.7% in the 12 months through June, while fruit and vegetable prices were 0.9% higher.

Goldman Sachs Global Co-head of Fixed Income and Liquidity Solutions Kay Haigh says we are only seeing “some early signs of tariff impact,” reports CBS News.

Over the last couple of months, egg prices have dropped; however, they were up more than 41% on a year-over-year basis.

DOJ sues California over the state’s law on the production of eggs

On July 9, the U.S. Department of Justice filed a lawsuit against the State of California, Governor Gavin Newsom, Attorney General Rob Bonta, and other state officials, arguing that the state's laws on the production of eggs and poultry products nationally violate the U.S. Constitution.

The law enacted on January 1, 2022, requires that all eggs produced and sold in California (even though they are produced in another state) must be procured only from hens in cage-free housing.

Agriculture Secretary Brooke Rollins slammed California for hurting consumers by raising egg prices and said, “It is one thing if California passes laws that affect its own State; it is another when those laws affect other States in violation of the U.S. Constitution.”

The news raised serious concerns and various reactions among consumers. Many agreed that eggs from cage-free hens, which are proven to be healthier by various studies, should be the norm, while others said it is important to have a choice of regular, cheaper eggs.

Eggs are among the most nutritious foods on the planet, and 87% of Americans consume them at least weekly. Indispensable in the kitchen as a common ingredient in numerous recipes, eggs are a staple more than four in five Americans always keep in their refrigerators.

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While high egg prices are frustrating consumers, the rising cost of another food staple is making them even more concerned about being able to afford essential foods.

And the Trump administration just made an unexpected move in a desperate effort to reduce prices of this grocery item.

Steak prices increased 8% year-over-year, and they will not likely come down anytime soon.

Image source: Shutterstock

Beef prices are at record highs and will continue to grow

According to the U.S. Bureau of Labor Statistics, ground beef was priced at $6.12 a pound in June, which is 12% higher than in June 2024.

This is the first time since the Consumer Price Index started to track the data in the 1980s that ground beef price has surpassed $6, according to the Joint Economic Committee's minority arm.

Steak prices increased 8% year-over-year, and they will not likely come down anytime soon.

KC Cattle Company CEO Patrick Montgomery told Axios that these prices are “just the tip of the iceberg. Prices for beef will continue to be tumultuous for the next two to four years.”

So what is causing skyrocketing prices?

Several factors contribute to higher beef prices across the country. Those include climate, which has reduced cattle herds through a multi-year drought, as well as policy and economics, with global import changes directly impacting the supply chain.

The temporary ban on live cattle imports, which started in May because of a parasitic flesh-eating maggot, also contributed to the higher prices.

While the USDA recently announced a phased reopening of cattle, bison, and equine imports from Mexico, another challenge for global supply chains is on its way: a new 50% U.S. tariff on Brazilian imports, which starts on August 1.

Reuters reported that Brazil, which accounts for about 23% of all U.S. beef imports, is reconsidering shipments due to tariffs.

Data from the latest USDA Census of Agriculture report from February 2024 indicated that the number of farms in the U.S. has dropped by more than 141,000 from 2017 to 2022.

Demand for beef continues to rise in the U.S., and it is projected that per capita beef consumption will grow 2.7% by 2025, above growth in consumption of broilers (2.3%) and pork (1.7%).

Beef is an important food staple in the U.S., providing essential nutrients.

According to Beef Cattle Research Council, a 100-gram serving of cooked beef provides 250 calories, 35 grams of protein, 10 grams of fat and 19% of the daily recommended value (DV) of iron, 77% DV of zinc, and 102% DV of B12.