Record beef prices raise holiday cookout costs
CHICAGO — Beef prices set records last month at US grocery stores, and economists expect they will climb further as demand increases during the summer grilling season that traditionally begins with cookouts on Memorial Day on Monday.
Higher prices hit consumers who are increasingly nervous about the economic impact of President Donald Trump’s trade policy and after Washington halted cattle imports from Mexico over a pest called New World screwworm, which could hike up beef prices further by tightening the cattle supply.
One consumer feeling the pinch is DeAndrea Chavis, an artificial intelligence analyst in Raleigh, North Carolina, who buys ground beef nearly every week to prepare tacos and other dishes for lunch but lately is making smaller portions because of rising prices.
Chavis said she has seen lean ground beef prices climb above $9 per pound from $6 to $8 in recent months. She is planning to keep hamburgers on the menu for a cookout next week but may have more hot dogs in the mix to control costs.
“Ground beef is supposed to be a cheaper option,” said Chavis, 28. “Now that is even starting to add up.”
Ground chuck prices in April reached a record $6 per pound, up 14 percent from a year ago, after farmers slashed their cattle herds to a 74-year low due to a years-long drought that reduced grazing lands.
However, demand for beef is expected to reach a 39-year high as consumers stomach higher prices, Rabobank senior analyst Lance Zimmerman said.
A Memorial Day cookout for 10 people eating a mix of foods, including one cheeseburger and chicken sandwich apiece, will cost an estimated $103, up 4.2 percent from last year, according to Rabobank. Hamburger meat prices jumped 6.4 percent, the bank said.
Some consumers are buying cheaper cuts of beef, such as a top sirloin, to save money.
