Ahead of Independence Day on July 4, a major holiday for grilling, the Wells Fargo Agri-Food Institute estimated the cost of a summer barbecue for 10 people will rise by 2.4% from last year to $161, with hamburger beef up 14%, according to a Reuters report.
U.S. grill masters and home chefs face sizzling beef prices for summer cookouts as drought and wildfires have discouraged ranchers from expanding cattle supplies that are at their lowest levels in 75 years.
The record-high beef prices have strained the wallets of U.S. consumers who also saw gas prices spike because of the Middle East conflict. Though demand has remained generally strong for steaks and hamburgers, some shoppers have shifted to other proteins, such as chicken, to save money.
"In times like this when the domestic supply is already inadequate to meet domestic demand, the inaccessibility of Mexican cattle supplies because of the spread of the flesh-eating New World screwworm parasite exacerbates the supply/demand imbalance, sending markets spiraling," said Bill Bullard, CEO of cattle producers' group R-CALF USA.
RECORD HAMBURGER PRICES
The average retail price of one pound of lean and extra lean ground beef hit a record $8.62 in May, up more than 12% from a year earlier, according to the latest data from the U.S. Bureau of Labor Statistics.
Prices are set to remain high after a persistent drought burned pasture lands and hiked costs of cattle feed, forcing ranchers to slash their herds, economists said. Many ranchers delayed rebuilding due to a resurgence of dryness this spring and wildfires that ravaged more grazing land.
Ranchers have sent cattle to be slaughtered, rather than keeping them to reproduce, because of the severe weather and high prices. Once they decide to expand operations by retaining female heifers for breeding, it takes at least two years before new animals are ready to be processed into beef. That timeline keeps supplies tight and prices high.
CHICKEN LOOKS CHEAPER
Facing a beef shortage, cooks can stretch their dollars by grilling chicken or pork instead, economists said. An American Farm Bureau Federation survey of food costs for July 4 found that two pounds of ground beef were 5.5% more expensive than last year, at $14.06. Two pounds of chicken breasts cost 3.5% more at $8.06, while three pounds of pork chops cost 4.7% more at $14.79.
"For anybody who is feeling a little bit stressed, open up your recipe book and get a few new options," suggest U.S. economists . "Then you can take that money and put it in your pocket, or you can go crazy on side dishes."
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