Pat Lafrieda Meat Meat provider CEO Pat Lafrieda will take part in the “Big Money Show” to break down his company's strategy to keep profitable as meat prices continue to rise in 2024.
Eggs aren't the only ones that are expensive. Beef prices are also rising, noting that executives from various companies have created key challenges in recent revenue calls.
In January, beef and veal prices rose 5.5%, surpassing the entire home food category, which rose 1.9%, according to the Labor Bureau's Consumer Price Index.
Courtney Schmidt, sector manager at Wells Fargo Agri-Food Institute, told Fox Business that the increase in beef prices is driven by tougher US beef production with consistent consumer demand.
Egg prices projected to exceed 40% in 2025: USDA
Currently, American herds have experienced downcycles in 2025 with cattle catalogues at historically low levels.
Beef packages for beef are available for sale in supermarkets in Foster City, California, USA on January 12, 2023. (Liu Guanguan/China News Service/VCG Getty Images/Getty Images)
Earlier this month, Bernd Nelson, an economist with the U.S. Farm Bureau Foundation, reported that as of January 1, 2025, US cattle and calf stocks had fallen by about 1% from the previous year, highlighting an ongoing decline in U.S. cow herds.
Nelson also noted that prices for Fed steers or cattle ready to slaughter have recently reached record highs, bringing benefits to sellers, but challenges to buyers. He pointed out that these high prices could prevent farmers from expanding their herds.
“The calf prices are also strong, providing opportunities for cattle producers. If these calves are kept or sold for breeding, we will remove more cattle from the beef market and tighten supply even further before there is a possibility of calve expansion in the 2026 generation,” Nelson said.
Currently, the industry is not experiencing what Nelson describes as a typical cow cycle. Prices are strong, but the uncertainty remains high.
Search for meat and pork products in the Walmart store on June 1, 2012 in Rosemead, California. (Bob Riha, Jr. / Getty Images / Getty Images)
Higher cattle prices and unpredictable future profits may force farmers to sell more female cows for beef rather than raising them for breeding. If that happens, the cattle industry could continue to shrink.
Second, prices could rise even further.
Americans are trying to raise their own chickens amid the national lack of eggs
Large retailers and fast food companies are paying attention to the beef prices that have impacted their 2025 guidance.
Walmart CFO John David Rainey told Fox Business that the food is “slightly bulging.” This is due to several items such as eggs, bacon and other meats.
Wendy CEO Kirk Tanner also told analysts that beef prices are driving inflation.
Cow shot. (Kennedy Hayes/Fox News)
“What's incorporated into the 2025 guidance is about 1% product inflation and about 4% wage inflation,” Tanner said. “I think beef will be its biggest driver year over year.”
According to Tanner, the company expects a bit of pressure on the bacon.
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Similarly, Shake Shack CFO Katie Fogertey told analysts: “The product outlook reflects expectations for low single digits inflation from low single digits to high single digits led by Beef.”
According to Schmidt, the good news is that the situation is supporting the chicken and pork industry.
“Improved consumer demand and supply corrections have improved prices for these meat,” Schmidt said.
