Grocery prices continue to rise, with beef costs reaching near record highs. The cost of sirloin steak averaged $11.97 per pound in January, just shy of the record high of $12.01 per pound set in November.
Americans continue to feel the squeeze at grocery stores, with prices of various food items increasing. While egg prices have been making headlines, another food category that’s giving shoppers sticker shock is beef.
According to recent data from the Bureau of Labor Statistics, the cost of food at home rose 0.5% in January from the previous month and 1.9% since the year before. This increase is partly attributed to skyrocketing egg prices, but there’s another food category that might be giving shoppers sticker shock: beef.
Beef Prices Reach Near Record Highs
Sirloin steak prices averaged $11.97 per pound in January, just shy of November’s record high of $12.01 per pound. In addition, ground beef prices averaged $5.55 per pound, again not far from the record high of $5.67 per pound set in September. Overall, the cost of beef and veal has gone up 5.5% since last year.
The global beef market is influenced by various factors, including production costs, demand, and trade policies.
According to the Organization for Economic Co-operation and Development (OECD), the average price of beef in developed countries was around $22 per kilogram in 2020.
In contrast, prices in developing countries like Brazil and China were significantly lower, at around $15 per kilogram.
Beef prices can fluctuate due to factors such as droughts, diseases affecting cattle populations, and changes in global trade agreements.
Soaring Beef Costs: A Shortage of Beef Cattle Inventory
If you’re wondering why the price of sirloin steak and ground beef is so high, the answer seems to be a shortage of beef cattle inventory. The U.S. Department of Agriculture reported in January that there were 86.7 million head of cattle and calves on U.S. farms. According to industry news publication Drovers, it’s the smallest inventory in nearly 65 years.
Beef cattle inventory involves tracking and recording the number of cattle on a farm or ranch.
This process is crucial for farmers to manage their resources efficiently, make informed decisions, and ensure compliance with regulations.
Key components of beef cattle inventory include breed, age, sex, weight, and health status.
Cattle are typically inventoried at birth, weaning, and at regular intervals thereafter.
Accurate inventory management helps farmers optimize breeding programs, reduce losses due to disease or predation, and improve overall productivity.
Low inventory levels have been attributed to drought and high supply prices, leading farmers to trim their herds. Something else to keep an eye on: America also imports cattle from Canada and Mexico. If the Trump administration follows through on threats to levy tariffs on goods from these countries, it could affect prices even further.
Coping with High Grocery Costs
If you’re having a difficult time keeping up with high grocery prices, it may be time to make some changes to the way you shop for food. Here are three ways to do so:
Grocery prices have been steadily increasing over the past decade, affecting households worldwide.
A study by the US Bureau of Labor Statistics found that food prices rose 12% between 2010 and 2020.
Several factors contribute to this trend, including climate change, transportation costs, and global demand.
Rising fuel prices also impact grocery prices, as it increases the cost of transporting goods.
Furthermore, changes in consumer behavior and preferences have led to a shift towards premium and organic products, driving up prices.
1. Explore Your Options
First, when it comes to steak, prices can vary depending on the type of cut you buy. Explore cuts that are outside your favorites. If available, you can also buy meat in bulk and slice your own steaks at home, filling your freezer with future dinner entrees. Similarly, with ground beef, prices can vary based on how lean it is and it can often be purchased in bulk as well.
2. Find Low-Price Brands
Low-cost grocers can make a big difference when it comes to shopping for food. Stores that keep things simple and don’t have on-site deli workers or butchers may not be able to deliver customized orders, but they can also afford to offer lower prices. If you don’t have access to a discount grocery store in your area, see if your regular supermarket carries store brands, which often cost less than name brands while still doing the job.
3. Plan Meals Around Sales
Planning out your meals every week can help reduce the amount of unnecessary food you might buy. Doing so in accordance with what’s on sale at your local grocery store can also help keep costs down. So, it may pay to flip through those flyers before you go shopping.
