Why your barbecue will cost more this summer (and it's not just beef prices)
· Business Insider
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- Ground beef prices in the US reached record highs of $6.90 per pound in April.
- The US cattle herd is at its smallest in decades due to factors like drought and high feed prices.
- Price spikes in propane and other items are also set to contribute to higher barbecue prices.
Even a backyard barbecue might raise your stress levels this year, as higher food costs make the price of summer staples harder to swallow.
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One culprit is the price of ground beef, which reached a record $6.90 per pound in April, according to the Bureau of Labor Statistics (BLS). That price is quickly approaching double what it was 10 years ago, and it's up almost 20% from a year ago.
But beef aside, price increases stemming from the Iran war have worsened the already dim prospects for an affordable summer cookout. The price spikes come at a time when consumers are spending the biggest chunk of their budget on food since the '90s.
Here's a closer look at why your barbecue might cost more this year.
Beef prices are continuing to rise amid cattle shortages
Beef prices in the US have increased by about 20% in the past year.PJ McDonnell/Shutterstock
Consumers have seen supply disruptions like this before for other grocery list essentials. For example, egg prices spiked due to an outbreak of H5N1 bird flu, with a dozen large, grade A eggs reaching an all-time high of $6.23 in March 2025, per the BLS.
Prices fell as the virus subsided and farmers increased their supply, dropping to $2.25 per dozen in April this year. Beef prices, however, might not get this relief as quickly — or at all.
Factors such as persistent droughts and high feed prices led ranchers to shrink their herds in recent years, Business Insider's Emily Stewart reported. Don Close, a senior animal protein analyst at the agricultural research company Terrain Ag, said factors contributing to the price spikes are "the culmination of the perfect storm."
The outlook in the near future remains bleak, as it takes time for ranchers to raise cattle. A female calf needs about two years to have her first calf, and it would take even longer for that calf to mature, Stewart noted.
Propane prices are also up due to the war in Iran
Propane, like other natural gas, has seen its prices rise from the effects of the Iran war.CL-Medien/Shutterstock
Americans are all too familiar with the war's effects on energy, with the prices at the gas pump serving as the ultimate indicator. The national average gas price was $4.552 per gallon as of May 22, according to AAA. Unfortunately for avid grillmasters, propane prices are also increasing.
The Mont Belvieu, Texas, spot price is a common benchmark for propane prices in the US. According to the US Energy Information Administration, it rose from $0.61 per gallon on February 27, the day before the war started, to $0.84 by May 15 — a 38% increase in less than three months.
Though propane production in the US is at record highs, the war and blockages in the Strait of Hormuz have reduced the supply of Middle Eastern sources, per LP Gas Magazine, meaning a higher demand for US propane and higher prices at home and abroad.
Other cookout products are beginning to see war-related price increases
Shortages related to the Iran war are affecting the entire supply chain.monticello/Shutterstock
Beyond the immediate price spikes Americans are seeing for a few products, some experts, like Siebert Financial CIO Mark Malek, have warned of a second inflationary wave that could ripple through the entire supply chain.
"The gas pump is only the opening act," Malek said in a blog post. "The real household inflation hit comes later, hidden inside everyday products."
One of the biggest disruptions has come from fertilizer shortages, as natural gas is a key ingredient. It's just another hurdle for farmers, who are already struggling due to factors like drought and tariffs. These setbacks can lead to lower crop yields and, in turn, higher grocery prices for shoppers.
"US farmers are expected to produce the smallest crop of hard red winter wheat, which is used to make bread, since 1957," Reuters reported, citing the US Department of Agriculture.
Even the production and packaging of foods are affected. According to S&P Global data, the Middle East is responsible for about 25% of polyethylene and polypropylene exports around the world, which is crucial in plastic packaging.
Even if Americans are staying away from red meat this barbecue season, higher prices may be unavoidable.
Nora Redmond contributed to an earlier version of this story.
Read the original article on Business Insider