The retail price of a pound of ground beef hit a record high of $5.98 in May, according to the Bureau of Labor Statistics. That’s up by 18 cents from April and a 16.2% increase from the May 2024 average of $5.15. An American Farm Bureau Federation (AFBF) survey puts the retail price even higher, now averaging $6.67 a pound.
Feeding 10 people a standard Independence Day cookout – including burgers, chicken, beans, and potato salad – costs about $70.92, or $7.09 a person. While the total cookout cost is down slightly from 2024’s record, it’s still 19% more expensive than 2020 at the start of the COVID-19 pandemic, The Wall Street Journal reported.
The ground beef price spike is driven by the tightest US cattle supply in nearly 75 years. The US Department of Agriculture reports a national herd of 86.7 million cattle, the lowest since 1951.
Droughts in key grazing areas and rising feed costs have made it harder for ranchers to rebuild herds. Meanwhile, cattle futures hit a record $2.19 a pound on Monday, June 9, up more than 10% over the course of the year.
A new threat is creating more problems: the spread of the New World screwworm, a flesh-eating fly making its way north through Mexico.
“This pest poses a serious risk not only to Texas livestock and wildlife but also to the economic backbone of our rural communities,” said Texas Agriculture Commissioner Sid Miller.
To prevent an outbreak, the USDA suspended cattle imports from Mexico in May, but that has further tightened beef supplies since Mexico is a top supplier of feeder cattle.
“A lot of people don’t understand what the ramifications of it are if it does get here,” said Dr. Phillip Kaufman, head of Texas A&M University’s insect sciences department.
The rising cost of beef is just one piece of the pressure Americans are feeling this Fourth of July. Inflation slightly rose in May and consumer spending declined as the US economy remains unstable under President Donald Trump’s sweeping tariffs.
A new WalletHub survey found that 53% of Americans plan to spend less this year than in 2024. Nearly two in five (38%) say they don’t feel financially independent heading into the holiday.
About half of Americans say inflation (52%) and Trump’s tariffs (48%) are affecting what they can afford for the Fourth of July.
“Many households are likely experiencing economic distress amid uncertainty caused by tariffs, international conflicts, and a slowing labor market,” said Alejandro Gutierrez-Li, an assistant professor of agricultural and resource economics at North Carolina State University. “The American economy is driven mainly by consumer spending. If confidence goes down and families spend less, this translates into lower sales and earnings for business owners, large and small.”
While ground beef is sharply rising, other meats aren’t seeing the same surge. According to the AFBF, chicken breast prices are up just 4 cents to $7.79 for 2 pounds, while pork chops are actually cheaper, falling 9% to $14.13 for 3 pounds.
WalletHub also said Independence Day traditions remain strong, with 61% of Americans planning to attend a cookout or picnic, and 41% expecting to watch fireworks.
Click here
to follow Daily Voice
Hartford
and receive free news updates.