First it was eggs, now it's beef prices that are surging

There’s more pain for consumers at the supermarket. In addition to increasingly-expensive eggs, the price of beef has moved significantly higher in the last few weeks.

The increase gained momentum in January when the Consumer Price Index showed prices of beef rose 5.5%. Overall grocery prices only gained 1.9%.

Food industry analysts attribute much of the increase to cutbacks in beef production. But just as in the rise in egg prices, demand also plays a role.

A January 31 report by Technavio predicted the U.S. beef market would grow by $8.1 billion by 2028, but noted some challenges facing producers – especially with preservation. Major producers include:

• Agri Beef Co.

• Cargill Inc.

• Conagra Brands Inc.

• CTI Foods

• Greater Omaha Packing

• Green Vista Farm

• Hilltop Angus Farm

• Hormel Foods Corp.

• JBS SA

• Kenosha Beef International Ltd.

• Marfrig Foods SA

• Minerva Foods SA

• NH Foods Ltd.

• OSI Group

• Perdue Farms Inc.

• Premium Brands Holdings Corp.

• Rain Crow Ranch

• Sysco Corp.

• Tyson Foods Inc.

• Verde Farms

Demand drivers

The Technavio report said rising consumer preferences and demand for beef is driving market growth, in part due to a growing trend toward animal-sourced protein and health consciousness.

“Cafes and eateries, middle class consumers, and the working population are driving this demand,” the firm said in its report. “Convenience foods like steaks, brisket, shank, loin, and ground cuts are popular choices. Kosher and Halal certifications are important for certain consumer groups.”

The American Farm Bureau Federation has reported that, as of the start of 2025, cattle herds were small and the price of cattle was rising. To bring beef prices down, current high prices must prompt producers to increase the size of their herds.