US beef prices hit record highs.

(CLO) Beef prices in the US have hit new highs as the country's cattle herd size falls to its lowest level in decades.

Data released Friday by the U.S. Bureau of Labor Statistics showed that the average retail price of 100% ground beef has risen to a record high of $6.752 per pound, the strongest monthly increase since June 2020.

Beef prices in the US have hit new highs as the country's cattle herd size falls to its lowest level in decades. (Illustrative image. Photo: Freepik)

According to the U.S. Department of Agriculture 's (USDA) January 2026 Livestock Inventory report, the total number of cattle and calves in the U.S. as of January 1st reached 86.2 million, a decrease of approximately 300,000 compared to the same period last year and the lowest level in 75 years.

Years of prolonged drought have forced farmers to sell their breeding cattle at high prices. Experts say the drought is the biggest contributing factor.

The drought in the American West and the plains has devastated pastures, depleting food and water resources. Many people have been forced to sell their livestock prematurely, including cows essential for maintaining future calves.

According to data from the Kansas City Federal Reserve Bank, each time droughts worsen, hay production decreases by 12% and hay prices increase by 5%.

According to the USDA, the beef cattle herd has shrunk to 27.6 million, a 1% decrease from 2025 and the lowest level since 1961. The number of calves born in 2025 is estimated at 32.9 million, a decrease of about 2% from 2024 and also at a record low.

The livestock industry is in its thirteenth year of its current cycle and its eighth consecutive year in decline.

Economists argue that selling livestock at current prices is sometimes more profitable than holding onto them to wait for future profits.

One farmer shared that the financial situation is "very precarious." Despite the sharp increase in livestock prices, the cost of maintaining operations has also escalated significantly.

According to an analysis by the U.S. Farm Bureau Federation, total agricultural debt is projected to increase by 5.2% to a record high of $624.7 billion in 2026, while interest expenses are expected to reach a record $33 billion. The average size of operating loans in 2025 is also expected to be approximately 30% higher than in 2024.

The federation also said the number of farm bankruptcies has risen to 315 in 2025, a 46% increase from the previous year. USDA data shows that more than 160,000 farms closed between 2017 and 2024.

Source: https://congluan.vn/gia-thit-bo-my-cham-muc-cao-ky-luc-10330868.html