How Beef Got So Expensive

The U.S. is in the midst of an unprecedented beef crisis, with steaks now costing $100 or more and prices up 40% in just a few years. The root cause? A cattle herd at its smallest size in 75 years, driven by a perfect storm of pandemic disruptions, devastating droughts, and a deadly parasite called the screw worm. Once a struggling industry, ranchers are now reaping record profits—$1,000 per animal, up from $2 in 2020—thanks to a supply shortage that has turned the entire beef supply chain upside down. But this bonanza for ranchers has come at a steep cost: meatpackers are losing $300 per animal, forcing plant closures and job losses in towns like Lexington, Nebraska. Restaurants, especially barbecue joints, are folding as brisket becomes unprofitable. Consumers are stuck paying premium prices, yet demand remains stubbornly high—Americans still crave beef as a cultural staple, even at inflated costs. Despite calls from the Trump administration and Health Secretary Robert F. Kennedy Jr. to increase herd sizes, ranchers are refusing, fearing a return to low-profit days. The solution? Importing beef from South America—but that idea has been shelved due to industry pushback. With no quick fix in sight, the era of the $100 steak may be here to stay, turning beef into a luxury protein for the foreseeable future.