US beef prices hit records, but ranchers say profits haven't grown
BBC traces the American beef supply chain and finds soaring costs are eating into gains from record-high cattle prices.
Conversation activity · last 4 days peak 5/hr
Summary, timeline and people extracted by Claude from 19 items across 3 sources · 7h ago. Quotes are verbatim.
US beef prices are 12% higher than a year ago—more than triple the general inflation rate—driven by the smallest US cattle herd since 1951 due to drought and disease. South Dakota rancher Eric Gropper is getting record prices for his calves, but says rising costs for trucks, fencing, and feed mean he isn't actually making more profit, a pattern BBC's Follow the Money series found repeated at the feedlot stage of the supply chain. The story has sparked online debate over whether meatpacker consolidation, inflation, or genuine supply constraints are behind the price surge.
- US beef prices are 12% higher year-over-year, more than three times the general inflation rate, driven by the smallest national cattle herd since 1951 due to drought and disease.
- Ranchers like Eric Gropper are getting record prices for calves, but sharply higher costs for trucks, fencing, water and feed mean their actual profit margins haven't improved.
- Feedlot operators show the same pattern: they sell cattle at record highs but also must buy cattle at record highs, per agricultural economist Brenda Boetel.
- Online reaction split between blaming monetary inflation, meatpacker market consolidation/private equity, and skepticism that ranchers aren't profiting, with some commenters claiming ranching families are earning well.
How it unfolded
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Reaction Reddit commenters dispute the article's framing
Some Reddit users cite high steak cut prices, while others claim ranching families they know are 'making a killing' and dispute the article's premise.
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Event Article reposted to Reddit
User KoseteBamse reposts the same BBC article to a Reddit community three days later.
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Reaction Discussion of US beef consumption and climate impact
Commenters compare US beef consumption (37kg/capita) to UK's (18kg/capita) and note animal agriculture's climate footprint as an added reason to cut consumption.
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Reaction HN debates causes: inflation vs. consolidation
Commenters argue over whether monetary inflation or meatpacker market concentration is driving the price/profit disconnect.
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Event Story posted to Hacker News
User tartoran submits the BBC article to Hacker News, where it gathers 74 points and 125 comments.
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Report BBC syndicates story via RSS
BBC Business feed republishes the article summarizing that beef is more expensive due to supply shortages but profits are being squeezed.
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Report BBC publishes 'Follow the Money' beef investigation
BBC World Service traces the US beef supply chain over a week to explain record retail prices and find out where the money is going.
What people are saying verbatim
“I'm able to pay my bills, but my input costs are so drastically high that if we didn't have these record prices we'd all be broke. I sit down to do my taxes, and it feels like I made a lot of money. But in the end I really didn't make any more.”
Eric Gropper, South Dakota cattle rancher · BBC News · Aug 4
“There should be laws ensuring that every market there should be at least 5-6 players and is free or is declared natural monopoly/monopsony and regulated.”
ReptileMan, HN commenter · Hacker News · Aug 5
“Ranches are making a killing. This article has no clue what they are talking about. My family has cows and it's crazy money right now.”
Nebraska716, Reddit commenter · Reddit · Aug 8
“Private equity and the billionaire class has ruined everything good because greed and their need to consume all resources.”
tacs97, Reddit commenter · Reddit · Aug 8
“I think you would be amazed at how cost insensitive some Americans are and how large that cohort is. Ground beef would have to exceed $20/lb before I would consider altering my routine.”
bob1029, HN commenter · Hacker News · Aug 6
Voices from the web unedited
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My father-in-law grew up on a small-time farm and then went into environmental engineering as a professor, and briefly worked on the Secretary of Agriculture's staff in the Biden administration. He has told me that there are 3-5 (can't remember the number) colossal meatpacking corporations in the US that have laid waste to smaller-time…
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Private equity and the billionaire class has ruined everything good because greed and their need to consume all resources. Nobody who performs the labor makes anymore money because private equity has been allowed to purchase anything and everything. Their only goal is profit. Nothing else matters to them. The company can go under for all they care…
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> And while meatpacking companies have increased the prices they charge for their beef, there is a limit. This is because supermarkets, restaurants – and US consumers – can, and will, simply switch to buying chicken or cheaper imported beef instead.I think you would be amazed at how cost insensitive some Americans are and how large that cohort is…
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This is not trolling. I mean it in earnest to point out their flawed reasoning and poor numeracy. We live in a capitalist marketplace - either the incumbents are competing and we get good pricing, or they can create their own competitor and reap the benefits. Win-win. So which is it
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> A new pick-up truck that once cost $40,000 now runs to $100,000. A wooden fence post has gone from about $6 to as much as $19. A quarter-mile roll of barbed wire has doubled, from $60 to $130. Everything he uses day to day, he says, has jumped in price since the Covid pandemic.I know why pick-ups have gone up in cost (though I don't think it's…
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setting up a co-op with other ranchers in the region to process their animals and distribute it. They might not even have to go that far, forming the coop for collective bargaining on contracts could be enough.
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yeah, it's called inflation, it really sucks for everyone except the people who receive the new money early (mainly the banking system, but also people w/liquid assets + finance adjacent industries like housing) we should avoid it oh well i guess a bunch of people will go bankrupt and then get bought up at distressed prices by people with access…
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Those are not big numbers considering they are the biggest meatpacker in America. Meta had $186b in gross profit last year. 372x the profit of the company who puts food on the table for most Americans.
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Animal agriculture is a key driver of climate change: https://sentientmedia.org/how-does-livestock-affect-climate-...Along with the high price, that's one more reason to not buy it.
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The article says that the farmers aren't getting the profits. You're saying the mega-corporations aren't making the profits. Pretty sure it's not the cattle. Who's getting the money?