June 11, 2013

Due to droughts that have led to the smallest US cattle herd in 61 years, US beef prices are hitting record highs.

Prices hit their highest just before the Memorial Day weekend when ground beef hit a record-breaking US$3.51/pound, but that is not stopping some Indianapolis shoppers.

"It's gone up a little price-wise, but we still keep coming back to the store," said shopper Ron Deter, who was buying more than US$100 of meat.

According to the USDA, as of Friday (Jun 7), sirloin steak was selling for an average of US$5.14/pound, while ground beef is at US$3.20. Analysts and store owners said those are historically high prices.

Dean Miller, who owns a meat shop on the west side, says beef prices are up 40% to 50%. "Right now ground beef prices are staying pretty steady. It's the choice steaks that have gone up tremendously, and pork prices," Miller said.

Higher feed costs coupled with increasing demand on the smallest cattle herd in over six decades is to blame, and a price break is not expected until next year.

Experts say prices are not likely to drop much before the next two grilling holidays -- Father's Day and the Fourth of July.