Beef Spotlighted in US Food Guidelines Is Pricier Than Ever

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(Bloomberg) — Consumer beef prices reached a fresh record in December, just as the US’s new dietary guidelines are set to boost demand for the protein. 

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Consumers on average paid $6.821 for a pound of ground beef in December, up 16% from a year ago and up slightly from November prices, according to the US Bureau of Labor Statistics.

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Elevated beef prices have been a contributor to higher overall grocery costs, with the food index rising 3.1% over the last year, BLS data shows. That outpaced growth in the overall consumer index, which came in at 2.7%, in line with expectations. Core inflation, which excludes food and energy, rose less than expected in December compared to the prior month.

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President Donald Trump has fixated on expensive beef amid growing concerns about affordability, and has tried to tamp down prices by boosting imports from South America. Yet one of the chief causes of beef inflation — a shrinking US cattle herd — is seen persisting into 2027.

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Beef demand has stayed resilient despite the high prices, and the Trump administration’s overhaul of dietary guidelines that puts proteins at the top of the food pyramid will likely encourage Americans to buy more meat. 

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“The food groups now being emphasized generally sit at higher price points,” said David Ortega, a professor of food economics and policy at Michigan State University. While animal proteins are available at different price points, “the overall category is still costlier than many other alternatives.”

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Foreign shipments, which come largely in the form of lean trimmings, can cool ground beef prices and “meaningfully impact” the optics of prices for the protein overall, said Omaha Steaks Inc. Chief Executive Officer Nate Rempe in an interview. But that will also be “a bit of a Trojan horse” because it only reduces costs for the cheapest, leanest ground beef products, he added.

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Steak prices in December averaged $12.512 a pound, up nearly 18% from the same time in 2024.

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Total US beef supplies in 2026 are expected to remain relatively flat year-over-year, according to the latest US Department of Agriculture report released on Monday. The outlook for imports was raised due to expectations of more shipments from Oceania and South America, though still accounting for about 7% of total supply. 

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That follows the Trump administration’s November move to ease tariffs on top beef producer Brazil. Meanwhile, China recently placed a 55% levy on beef shipments that exceed certain quotas, a move that could potentially route more South American supplies to the US.

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