Beef prices across the United States remain stubbornly high and experts warn it could take years for consumers to see relief.
The Consumer Price Index for January indicates that beef and veal prices are up 15% compared to the same time last year, while ground beef prices have increased by more than 17%.
Kim Nygard, owner of Double DD Meats in Mountlake Terrace, has observed a steady increase in costs at her shop over the last several years.
“It’s just a constant, gradual up and up and up,” Nygard said. “I never see it go down.”
While customers continue to buy beef, she noted that high costs might be pushing them to change purchasing habits.
“They’re still purchasing it,” she said. “They just probably can’t afford as many steaks and stuff.”
The price hikes are driven by a shrinking U.S. cattle herd, a trend that has taken place for decades. Experts have blamed drought and rising production costs.
Dan Varroney, an economic strategist and President/CEO of Potomac Core Consulting, explained that the nature of the industry makes a quick recovery unlikely.
“It’s going to take a long time to rebuild those herds,” Varroney said.
He noted that ranchers require a sense of stability to invest in larger herds. Varroney suggested that “policy certainty” would help ranchers feel more confident about increasing their production levels.
“Creating a sense of certainty that we’re not going to have any massive policy changes, that beef will be a preferred dietary in the guidelines, that there’ll be no more environmental restrictions placed on it,” Varroney said.
Despite the higher prices, local shopper Ira Gross said his family still buys a significant amount of beef from the Mountlake Terrace shop.
“We buy a lot. We buy it all from here,” Gross said. He added that to afford the meat, “We just drink less wine.”
Double DD Meats has attempted to mitigate the price hikes by searching for better deals from their suppliers and keeping their own markups low.
“We love to find bargains and bring those in to help everybody out, but they’re hard to find right now,” Nygard said.
Consumers can manage their grocery costs by choosing less expensive cuts of meat or buying in bulk when beef goes on sale. Another strategy involves substituting other protein sources into their diets when beef prices are at their highest.