High Beef Prices? The Numbers Still Show a Huge Demand in Montana

"Record high beef prices are getting a lot of attention, and the argument can be made that extraordinary demand is the key driver."

That's according to some interesting statistics compiled in a recent account shared by Montana's Northern Ag Network, and CoBank, a member of the Farm Credit System, a national network of cooperatively owned lending institutions. 

The American consumer’s access to affordable high-quality beef rivals that of any other nation. Retail per capita beef consumption is headed for 60 pounds this year, and 87% of production is Choice grade or higher. For the first time since 1988, the volume of U.S. Prime graded beef produced in March-May exceeded the volume of Select.

PROTEIN, PERCEPTION, POPULARITY

The consumer perception of the health benefits of eating beef has in recent times improved as well. Where red meat was once demonized as an artery-clogger, beef is now on a pedestal for fitness-conscious consumers who laud protein content for muscle production. It seems the U.S. consumer cannot get enough animal protein these days, and beef remains king.

OH, THAT'S HOW HIGH THE PRICES ARE

According to the most recent inflation data released by the U.S. Bureau of Labor Statistics, in July core inflation rose 0.2% month-over-month but was up 2.9% year-over-year. However, the all-fresh retail beef prices surged by 9% year-over-year, hitting an eye-popping $8.90/lb. Even at these levels, prices have been unable to sway the American  consumer's interest in beef.

Now, while demand remains strong, rising prices for beef cuts and steak type items are pushing some beef-loyal consumers to settle for lower-tier beef items. Maybe a chuck roast instead of a ribeye or other pricier steak items. So, the consumer pressure on ground beef supply has contributed to tighter availability.

Cattle prices were at historic highs to start 2025 and have only continued higher through mid-year. CoBank points out that, bottom line, the fundamentals have firmly driven the market to the point where it is today. Twelve months ago, there was a question whether beef demand would hold up at higher prices, but today most analysts are fairly certain that beef value is still in good standing.