Beef prices stay high as the nation's cattle herd sits near a historic low

Anyone who has stared at a steak price tag lately is not imagining it. Beef is still among the priciest items in the meat case. The reason comes down to a simple shortage of cattle.

What wholesale numbers show

Federal market data show Choice boxed beef selling for about $373.98 per hundredweight on Thursday, down $2.52 from the day before but far above where it sat a few years ago. Select grade beef was near $352.62. Those wholesale prices set the tone for what stores charge at the counter.

Ground beef keeps climbing

At the grocery store, ground beef averaged about $7.16 a pound in August, up roughly 7.9% from a year earlier. Steaks and roasts cost even more per pound. Shoppers have been trading down to chicken and pork or buying smaller packages to stretch the budget.

A small herd and slow rebuilding

The U.S. cattle herd is hovering near its lowest level in decades after years of drought and high feed costs pushed ranchers to sell off animals. Rebuilding takes time. A heifer kept back to become a mother cow is not sold for beef that year and her first calf takes more than two years to reach the market.

That slow cycle means supply stays tight even when demand holds steady. Analysts say meaningful relief is unlikely before the herd grows again and that could take a couple of years.

What shoppers can do

Cheaper cuts such as chuck roast and ground beef blends tend to rise less than premium steaks. Buying in bulk when stores run sales and freezing portions can also help. Checking weekly grocery ads before planning meals is one of the easiest ways to keep the bill down.