The unexpected force keeping beef prices high and why the pressure could last for years

Beef prices aren't easing anytime soon and economists warn the pressure could last for years.

That's because the U.S. cattle herd has fallen to its smallest size in 75 years, after years of drought, rising feed costs and an aging ranching workforce forced producers to scale back.

"The biggest thing has been drought," Eric Belasco, head of the agricultural economics department at Montana State University, told Fox News Digital.

Drought quickly makes it harder and more expensive for ranchers to raise cattle.

But even when conditions improve, rebuilding the herd takes time.

Peel, who specializes in livestock marketing, said it takes roughly two years to bring cattle to market, and several more years to rebuild herds, leaving little room for short-term relief.

And the supply crunch is only part of the story.

The U.S. beef industry is also highly concentrated, with four major companies-Tyson, JBS, Cargill and National Beef-processing about 85% of the nation's grain-fed cattle.

Critics argue that level of consolidation gives meatpackers significant influence over prices, while industry groups say the market remains competitive.

Higher prices haven't scared off consumers.

According to U.S. Department of Agriculture data, the average price of beef climbed from about $8.70 per pound in March 2025 to $10.08 a year later, an increase of roughly 16%.