The prices of beef are expected to increase by 10 percent in the summer of 2014.
Beef prices are reaching a record high, having increased by 5 percent in 2013, according to 22News.
Government data on beef prices released on Thursday, Feb. 20 stated consumers pay an average of about $3.50 per pound of ground beef, MarketWatch reported. Beef prices are expected to keep growing, with research from the USDA stating prices for beef will increase faster than just about anything this year.
Several factors are playing in the growing prices of beef, 22News reported. An increase in the price of corn has led to a decrease in cattle herds. There are more areas in the U.S. going through a drought.
According to MarketWatch, cattle herds fell to its lowest number in 63 years. William Hahn, agricultural economist with the U.S. Department of Agriculture, commented on the effect the decrease has on largest beef producers in the world.
"Cow numbers were down . . . the lower supply meant higher prices," Hahn said.
Gary Golec, owner of Serio's Market in Northampton, Mass., spoke with 22News about the effect the beef price increase will have on his business.
"Unfortunately it's the price of doing business," Golec said. "If there's a legitimate reason for it to go up, then it's going to go up and the consumers have to pay for it in the end."
CattleFax's senior analyst Kevin Good said there is some good news in the fact that cattle herds are starting to grow, according to MarketWatch. Good said that the process of breeding and putting calves on the market takes more time than it does for other animals.
"It's not like poultry," Good said. "It takes a longer time for a cattle to be ready for slaughter."
U.S. consumer demand for beef has been declining, with 39 percent of Americans saying they eat less beef now than they did three years ago, MarketWatch reported. However, experts, such as Rabo AgriFinance cattle economist Don Close, say as the economy improves over the next few years, demand will experience a small increase.
"While the price increases of beef are notable, this shouldn't price consumers out of the market," Close said.
Erin Chase, consumer shopping expert for Savings.com, said consumers can save money on beef by finding out when certain items will go on sale and look for coupons. Chase also said consumers can take advantage of deals at warehouse clubs such as Costco by taking prices of sales on hamburgers and waiting to buy them in the future when they are that price.
