US Beef Production Struggles to Meet Demand, Prices Hit Record Highs
The United States is increasingly reliant on beef imports as domestic production fails to keep pace with growing consumer demand, driving prices to unprecedented levels, according to a leading figure in the global meat industry.
Wesley Batista, a key leader at JBS, the world’s largest meat company, stated that the US is experiencing “the highest beef price in history” and requires increased imports to satisfy its appetite for protein. Labor Department data confirms the average price of a pound of ground beef reached a record $6.32 in US cities this August, a 13 percent increase year-over-year. Despite tariffs imposed by President Trump earlier this year, beef imports rose by 30 percent in the first half of 2025, with Brazilian imports surging 91 percent before a subsequent tariff increase to 50 percent.
Batista suggested the rising popularity of GLP-1 weight loss drugs like Ozempic and Mounjaro may be contributing to the increased protein demand, as users are advised to maintain adequate protein intake to preserve muscle mass. “No one knows exactly what is the impact of these new drugs… but something is happening because protein overall became [a trend],” he said during a recent conference. This shift in dietary focus comes as more consumers prioritize protein intake, with a recent survey showing 71 percent of respondents actively trying to increase their protein consumption – a significant rise from previous years, according to the International Food Information Council.
Analysts attribute the supply issues to a shrinking US cattle herd, the smallest since the 1950s, exacerbated by droughts in the American West and South-East. The reduced herd size is a concern for the long-term stability of the US beef industry and could lead to continued price volatility. Larissa Alvarez of StoneX noted that ranchers are cashing in on record-high calf prices rather than breeding, further limiting future supply. JBS, which operates nine facilities in the US and generates half of its $77 billion revenue from the American market, maintains that tariffs haven’t significantly impacted its business due to its strong domestic production capabilities. For more information on sustainable food systems, see the EAT-Lancet Commission report.
Batista indicated JBS is focused on improving efficiency in Brazil’s beef sector and believes US farmers could significantly increase output with improved breeding and nutrition practices. The company is also diversifying into other protein sources, including eggs, fish, and plant-based alternatives.
