The beef prices in the United States are still soaring, with meat products like steaks and ground beef much more expensive compared to a year ago. However, Nate Rempe, President and CEO of Omaha Steaks, believes that the beef market may start to stabilize next year, providing some relief for consumers from the price pressure.
Rempe stated on the Fox program “Mornings with Maria” on June 4, “The number of cattle in the United States is indeed at its lowest level since the 1950s.”
“Supply pressure has indeed exerted significant upward pressure on prices, especially with such strong demand in the United States,” he said.
According to data from the Bureau of Labor Statistics, meat prices have risen compared to the same period last year, with steak prices up by 7%, ground beef up by 10%, chicken up by nearly 3%, and ham rising by over 4%.
“Supply is a tricky issue,” Rempe said, “We need to rebuild the cattle population, which will be completed in approximately the next 12 months.”
Since the 1980s, the Bureau of Labor Statistics has been tracking the prices of sirloin steak and ground beef. Data shows that the prices of these popular meat products remained relatively stable before the first summer of the COVID-19 outbreak, followed by several years of record price spikes experienced by consumers.
The current high price of beef is attributed to factors such as droughts, high grain prices, and rising interest rates making cattle farming a costly industry. To cope with rising operational costs, many U.S. cattle breeders have reduced herd sizes, with some even exiting the industry altogether. According to the U.S. Department of Agriculture, the cattle population in the U.S. has hit a historic low this year. The latest report from the Agriculture Department shows a continuous decline in the numbers of cows and heifers. Additionally, new tariffs imposed by the Trump administration have added complexity to the market. The U.S. imports a significant amount of meat from Canada and Mexico, both countries affected by recent trade policy changes.
Despite the uncertainties, Rempe predicts that as ranchers focus on expanding cattle herds, the market may begin to stabilize next year.
“I speculate that by the third quarter of 2026, we will start to see improvement,” he said.
While acknowledging the short-term pressure brought by tariffs, Rempe also expressed support for the Trump administration’s efforts to renegotiate trade agreements with other countries.
“I like exports. I like the role exports play for the industry and the country,” he said. “Foreign buyers often pay higher prices for beef. This is a positive development for meat processors and ranchers… but we do need a balance.”
Steve Lucie, a fifth-generation rancher, stated earlier on the Fox program “America Reports,” “Our country has experienced too many ups and downs, especially in this industry.”
“Farmers and ranchers have to deal with price fluctuations every day. So, this doesn’t bother us,” he said.
Lucie acknowledged that tariffs may bring short-term pain but believes it is a step towards creating a more equitable competitive environment for the industry.
“I think none of us really know what these tariffs will result in,” he said. “But what we do know is that the American beef industry has been at a disadvantage for a long time.”