Beef Prices Stay High as US Cattle Supply Shrinks

• Tyson Foods is closing beef plants and reporting significant losses in its beef segment due to a near five-decade low in US cattle supply.
• High cattle costs have driven ground beef prices up 25% since early 2024, with overall beef prices up 12% year-over-year, leading to consumer pushback.
• Rebuilding the US cattle herd will take several years, but a partial resumption of live cattle imports from Mexico and USDA investments in mid-sized processors may offer limited near-term relief.

Tyson Foods is closing beef plants due to a severe US cattle shortage, leading to significant operating losses and record-high consumer beef prices. While some relief from Mexican imports and USDA investments is anticipated, a full recovery of the cattle herd and lower prices will take years.