05/22/2026
Consumers are paying record-high prices for beef. But where is that money actually going?
USDA data shows the retail sector’s margins have steadily increased over the past decade.
➡ From 2016-2019, retail sector margins averaged about $1,345 per head of cattle.
➡ By 2025, that margin had increased to an average of $1,963 per head.
➡ In early 2026, retail sector margins climbed to more than $2,035 per head, roughly a $690 per head increase compared to the first four years of the decade.
➡ If retailer margins were the same today as they were in March 2016, Choice retail beef prices would be about $1.40 per pound lower.
Over the past decade, the retail sector has progressively increased the gap between wholesale beef prices and the prices consumers pay at the meat counter.
Meanwhile, cattle producers remain widely dispersed, decentralized participants in the beef supply chain and are considered price takers, while downstream packers and retailers are highly concentrated and possess market power.
Before policies are implemented to lower cattle prices, regulators and antitrust enforcers should first determine how much of increased beef prices is attributable to competitive market forces versus concentrated market power.
For a full breakdown on rising retail beef prices, retailer margins, and market concentration in the beef supply chain, watch here: https://youtu.be/BabFs7GW-E4?si=qNGNJYKXzuXxZC_J