NASHVILLE, Tenn. (RFD News) — Families continue buying beef at a strong pace despite record retail prices, something analysts say has remained surprisingly resilient over the last several years. Livestock Market Information Center Director Tyler Cozzens says the Retail All-Fresh Beef Demand Index posted another strong first quarter in 2026.
“The Livestock Marketing Information Center calculates the Retail All-Fresh Beef Demand Index, and that was reporting a strong first quarter for 2026, with an index value of 147. This index value increased 10 points, or about 7%, from the prior year, so it was a big jump there,” Cozzens said. “Now, if we look at this from a historical perspective, over the last seven years, since 2019 on the first-quarter basis side of things, the All-Fresh Retail Beef Demand Index actually increased 41 points. That’s an increase of about 39 percent over the last seven years.”
Cozzens says drought conditions remain one of the biggest concerns for cattle producers moving forward.
“The latest drought monitor map actually shows that 76 percent of the U.S. was experiencing dryness or drought conditions. Now we have to keep in mind that last year, at the same time, only 55 percent were experiencing dryness or drought. As noted by the USDA on May 12, approximately 62 percent of the cattle inventory is within an area experiencing drought, compared to 29 percent at the same time last year, so that’s a 33 percent increase in drought across the cattle country.”
Cozzens says hay inventory levels are also down, and while prices have remained relatively stable so far, prolonged drought could push prices higher later this summer.
Meanwhile, analysts say consumers continue looking for ways to manage rising protein costs.
American Farm Bureau’s Bernt Nelson says beef prices remain elevated because of historically tight cattle supplies, while pork and poultry continue offering more affordable options for many families.
“Home-grown meat continues to be a staple for all of our American families, and according to the Meat Institute, meat sales hit a record high, $112 billion, last year, with more than 98 percent of American households buying meat for daily meals,” Nelson explains. “These record-high prices from historically tight cattle supplies are continuing to bring challenges for both consumers and farmers and ranchers. Pork is offering some relative value and price stability. That’s being supported by better, more efficient production from our hog farmers. Chicken stands out as the most accessible protein option.”
Nelson says shoppers may still find opportunities to save money as retailers increase specials and promotions heading into major summer holidays.
“Retailers and grocery stores generally increase sales and specials as holidays get closer, and this can be a really good way to save money,” Nelson continues. “And for all those pitmasters looking to stock up on their favorite cuts, this also offers a great opportunity to get ahead of cookouts later in the summer.”
Leaders in the protein sector are also gathering this week for the USMEF Spring Conference to discuss the latest trends in beef production, exports, and global trade.
Oklahoma State University livestock economist Dr. Derrell Peel joined us on Thursday’s Market Day Report to discuss the current landscape for U.S. beef and pork markets.
In his interview with RFD News, Peel discussed the current landscape for U.S. beef and pork, as well as the factors that continue to drive historically high cattle and beef prices in the United States.
“The consumer willingness is incredible,” Peel told RFD News. “So, consumers really want this product. They’ve been willing to move up as prices go up. Obviously, with tighter supplies, there’s less beef to go around, and certainly some consumers are probably eating less simply because it’s not there, but they’re willing to pay, and if they really want it bad enough, they’re paying a lot to get that beef.”
The conversation also focused on renewed market access to China and the impact the industry could eventually see from reopened trade channels.
Finally, Peel discussed whether the trends he is watching across the protein sector largely align with what the U.S. Meat Export Federation is seeing globally.
