Beef is still for dinner on July Fourth, despite record-high prices
Many Americans will fire up the grill this holiday weekend and celebrate America’s 250th birthday with a nice, juicy steak — a nice, expensive one, at that.
Beef prices have spiked in the past year due to drought, high feed costs and herd liquidation sales.
The cattle supply in the United States is at its lowest level in seven decades, putting more pressure on prices at both the grocery store and at restaurants.
According to the Bureau of Labor Statistics, steak prices in May averaged $12.80 a pound. That was 16% higher than the year before and the second-highest ever in the U.S.
Ground beef checked in at about $6.75 per pound, up by about 12% from May 2025, according to the Federal Reserve Bank of St. Louis.
Americans, steak and holidays
Despite the high prices, Americans are not pulling back from their beef consumption.
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Experts say rebuilding the cattle supply could take years, which means beef prices will likely remain high for the foreseeable future.
“We are seeing customer demand for steaks remain quite high, with a shift towards more premium and organic options,“ a spokesman for the grocery store chain Kroger told CNBC.
NielsenIQ reports that beef is No. 1 in spending growth compared to other food categories heading into this holiday weekend, with consumers considering steaks an affordable luxury.
Omaha Steaks, known for gift packages, said sales of its top sirloin filet were 25% higher in the weeks before Father’s Day, compared with 2025, according to CNBC.
Cattle supply negative impacts
But not every entity is benefiting from Americans’ love of steak.
In May, Straight Arrow was at the Moontower in Houston, Texas, when the restaurant said goodbye to its $24 ribeye dinner special.
“Charging somebody $35, $40 for a plate here just did not work in our minds,” bar manager Ian Arocha told Straight Arrow. “It ceases to feel special, and it feels like a slap in the face to your customers.”
Meanwhile, the cattle supply shortage is having a significant impact on the meat-packing industry.
“There aren’t enough cattle for the hooks that are available,” Ethan Lane, a lobbyist for the Cattlemen’s Association, told Straight Arrow in February, “so you’ve got processors around the country running at 50 or 60% capacity.”
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Ella Rae Greene, Editor In Chief
