May 31, 2013
US beef prices continue to increase
Beef prices across the US are continuing to rise as grilling season begins this summer.
There are several reasons for the record high beef prices. Purdue University Agricultural Economist Chris Hurt says last year's drought and farmers moving more of their corn to ethanol production are the main factors in creating smaller supplies which leads to higher prices.
Hurt says these issues go back a few years. He says we saw a 10% increase in beef prices in 2011, another 6% increase in 2012 and this year, prices are expected to rise another 3-4%.
Hurt says consumers can expect these high prices to stick around for a few more years. He says if all goes well, we could see higher beef supplies, and therefore lower prices, by 2016.
