USABeef prices are hitting record highs, due to a California drought this year, as well as lower corn volumes from last year, according to CNN.
Given the size of the US cattle herd and the low number of animals being slaughtered, higher prices of beef were inevitable. There has also been a significant increase in overseas demand for US beef from Asian markets.
The consumer price per pound of ground beef is around $3.55, according to government readings for February. That is a 56% increase since 2010.
"These record high beef prices are here to stay," said Ricky Volpe, an Economist with the USDA. "It'll be a long time until supplies will be more in line with demand once again."
These higher prices are expected to eventually make their way through the entire supply chain, ultimately increasing the consumer price points for cured and raw beef.
Will prices stabilize or continue to increase? Stay tuned to DeliMarket.TV as we continue to follow this story as it unfolds.