Beef Prices Stay High as US Cattle Supply Shrinks

Summary

Bloomberg agriculture reporter Ilena Peng discusses how shrinking US cattle supply and high livestock costs are pressuring beef packers such as Tyson Foods, which is cutting capacity and deepening beef-segment losses. She explains that beef prices remain elevated because the cattle herd is near a five-decade low and rebuilding takes years. A planned resumption of Mexican cattle imports through one Arizona port may provide only limited near-term relief.

• Tyson Foods has been cutting beef-processing capacity and reported continued beef operating losses; its latest plant closure was not enough, and it cut its profit outlook.
• US beef packers are paying very high cattle prices, passing some costs to retailers but seeing volume drops.
• Beef prices are up sharply, with ground beef up 25% since early 2025 and overall beef up 12% year over year.
• USDA data shows the US cattle herd near a five-decade low, and herd rebuilding takes several years.
• Consumer pushback at record beef prices is emerging, but tight supply is expected to keep prices from dropping significantly soon.
• Mexican live cattle imports may resume via one Arizona port, with limited national impact but possible regional relief.
• Meatpacking plant closures often become permanent, and the USDA announced $500 million for midsized beef processors.