Beefed Up Prices
Food Access & Rancher Livelihood in Texas
In Texas, beef is more than an ingredient, it’s a livelihood – with 12 million head of beef cattle in Texas, the Lonestar state is the biggest producer of beef in the US. So why are Texans struggling to afford beef and what does the price of beef mean for Texas ranchers?
Higher Beef Production Costs
As the domestic (in the US) cattle herd reaches a 75-year low, supply scarcity is one driver of high beef prices. But since the 1950’s, ranchers have become more efficient and can produce more beef with fewer cows. A larger driver of high beef prices is higher costs to cattle raisers. For the past five years, drought conditions in beef-producing states like Texas, Nebraska, and California have diminished grass available for cattle to graze. Healthy and abundant grass on grazing land is essential to ranchers as a no to low-cost feed.
With diminished grass available, ranchers have to purchase more feed to sustain their herds, and that cost is passed to the consumer. Higher input costs also result in more heifers (female cows) being sold for beef in order to recoup input costs, resulting in fewer calves in the herd and driving long term supply disruption.
Short-term measures necessary to turn a profit from beef drive long-term beef supply scarcity.
Another factor driving inflated food prices generally is the global nature of modern food systems. In beef for example, ground beef is often a blend of both domestic and imported meat. Global conflicts in oil-producing regions over the last five years have increased fuel costs, driving up food transportation prices. Similar to the issue of ranchers trying to break even from higher feed costs, when meat distributors pay more for transportation, that cost is also passed to the consumer in order for the distributor to continue making a profit.
Animal Lifecycles in the Marketplace
Clyde Sommerlatte, owner of the Luling, Texas-based 2 Bar C Ranch, emphasizes the lifecycle of cattle as a reason beef supply and prices are slow to regulate after a setback in production like drought. “From the time a calf hits the ground, you’re looking at around [two years] to harvest beef from an individual animal,” Sommerlatte said. “And the breeding, from insemination to pregnancy, is around another year before that. Overall, ranchers are thinking and working three years in advance.”
In Texas, the return of the New World Screwworm (NWS) has also triggered restrictions on herd movement, additional inspections, and restrictions on cattle trade with Mexico to prevent the spread of NWS. These measures are necessary but disruptive for affected ranchers, and coming on the heels of years of drought and decline in the number of cattle, they make supply recovery and rancher profitability an even greater challenge.
Short Vs. Long Term
For consumers, persistent beef price inflation has resulted in a higher cost to eating out and sticker shock at the grocery store. In SFC’s The Happy Kitchen cooking and nutrition class, course facilitator Joyce Harris shared, “We have a joke in my family that we can give the dish the essence of meat. We can use meat as a condiment rather than the main attraction and that helps stretch what we buy.”
So when can shoppers expect to see beef prices fall? In late Agosto 2026, the Trump administration waived import tax on beef intended to drive down beef prices by increasing supply. This move opened the door for 300,000 metric tons of beef from Argentina to enter the American market.
This move has been received positively by some as a means of reducing price pressure on beef, though some US ranchers worry the suspension of tariffs for imported beef will make it harder for US beef producers to turn a profit.
In light of persistent heat and drought conditions that are likely to continue to affect grass availability, efficiency-based solutions are an important piece of the beef production puzzle in years to come. Veteran ranchers like Sommerlatte emphasize that beef production and prices are cyclical and the market will regulate with time. As Sommerlatte says, “You have to take care of the animals. You have to take care of the land, and if you do that long-term the land will be here to take care of you.”
You can shop 2 Bar C’s selection of beef and other local food producers at SFC Farmers’ Market Downtown on Saturdays 9 AM – 1 PM.