Rising gas prices are straining American budgets beyond the pump. For many families, beef is the latest casualty.
According to the U.S. Bureau of Labor Statistics data, the average price of ground beef has climbed from about $2.46 per pound in 2006 to about $6.68 per pound in 2026.
A major driver of the rising price of beef is a historic cattle supply shortage.
According to a summary report released by the U.S. Department of Agriculture, as of Jan. 1, 2026, the U.S. is seeing the smallest herd of cattle in 75 years.
The report states that all cattle and calves totaled around 86 million, down 0.3% from 2025. The start of 2025 saw the smallest herd since 1951.
This shortage is leading to fewer calves entering feedlots, which keeps beef supply tight and pushes prices higher.
Drought is another reason for higher prices.
Amanda Grev, the forage and pasture specialist at the University of Maryland’s Western Maryland Research & Education Center, said that a “drought decrease[s] the amount of growth in pasture.”
When there is not a large amount of grass, there is a decrease in the amount of grazing.
“In very severe conditions, it can start to cause enough stress on the plants that they will stop growing at all,” Grev said.
This also affects ranchers.
“Producers may have to sell off some animals so they have less to feed or they will have to spend more money paying to bring forage from other places onto their farm,” she said.
While consumers are still buying beef, analysis from the U.S. Bureau of Labor Statistics suggests the market is gradually shifting as prices push shoppers toward cheaper protein options, such as chicken.
According to BLS, chicken prices were $1.05 per pound in 2006 and rose to $2.05 per pound in 2026. Chicken prices increased roughly 98 cents per pound, a much smaller jump than beef.
USDA’s Economic Research Service projected beef and veal prices will continue rising. In its Food Price Outlook, the USDA stated “beef and veal prices are predicted to increase 6.3% in 2026?.
This suggests Americans are likely to continue facing pressure at the grocery store, with affordable beef straining the pockets of consumers in the near term.
As domestic beef production slows, the United States has leaned more heavily on imports.
Brazil leads the way for imports of meat in the U.S. Australia and New Zealand have also increased shipments, helping fill the gap as domestic cattle numbers fall.
While imports have risen, exports have declined.
The shortage has made American beef more expensive abroad, leading to reduced demand from key international markets. USDA data shows total U.S. beef exports fell in early 2025.
With beef prices climbing, shoppers are increasingly looking for lower-cost proteins.
According to the USDA’s Economic Research Service, poultry prices rose just 1.5% year-over-year as of March 2026, compared to beef and veal prices that rose 12.1% higher over that same period.
Tyson Foods, the top seller and largest meat processor of beef and chicken in the U.S reported that beef is expected to have an operating loss of $350 to $500 million in fiscal 2026.
The company’s chicken segment is expected to be profitable in fiscal 2026, with its operating income projected to rise from $1.9 billion to $2.05 billion during the fiscal year.
Beef still remains a staple of the American diet, but at nearly $6.68 a pound this suggests it may become more of a luxury item than an everyday purchase for some households.