Beefed-Up Burger Prices

The Commodity Market is Sizzling – Especially for Beef

Lately, the commodity markets haven't exactly been super, with the Datum FS Commodity Index hitting a 31-month high (think Priest Holmes in his prime). The usual suspects—eggs, chicken, and beef (including hamburger)—continue to drive the surge.

In fact, here’s a fun (or not-so-fun) fact: the cost of beef trim to produce an 82% lean hamburger in January reached a record high for the month, soaring 29% year-over-year (think LeSean McCoy breaking tackles).

What’s Behind the Burger Price Boom?

As you and your mothers may know, the U.S. cattle herd has been shrinking over the past few years due to persistent droughts in the Southern Plains. Last week, the USDA released its annual cattle herd update, and—to no one’s surprise (including Gomer Pyle)—it confirmed that the total herd is down another 1% compared to last year at its smallest level since the Los Angeles Rams won their first NFL Championship in 1951.

Fewer cows mean less beef, and with demand holding strong, it’s no wonder prices continue to climb.

Stay Ahead of the Market

Curious about best practices in distribution and manufacturing? Check out the latest Farm to Fork: The Innovators Podcast , featuring Michael V. DiBeneditto from Golden Waffles here.

Looking for a smarter way to manage your commodity sourcing, reporting, and forecasting? Let’s connect! Direct message me or click here to learn more.

Thanks for reading!