So Long, Steak: Beef Prices Are Expected To Skyrocket 5-8% In 2012

Photo: Flickr / Anthony Albright

Take a moment to savour your cheeseburger: A drought limiting the supply of cattle is expected to send beef prices through the roof. America’s cattle supply fell to 90.8 million, a record unbroken since 1952, according to the U.S. Department of Agriculture.

The price of ground beef was up 23 per cent last year and prices are expected to increase five to eight per cent this year, said analysts.

Beef could cost an average of $5 a pound, reported Georgina Gustin in the St. Louis Post-Dispatch.

But don’t cry for the butcher just yet. 

Americans have already decreased the amount of beef they consume, with intake down 25 per cent from 1980. Some supermarkets are even rolling out incentives to sell more beef. Dierbergs, a chain in Missouri, for example, offered free potatoes, carrots and onions to customers purchasing ground beef. 

On the bright side, foods hit hard in 2011 are seeing a drop in price. Corn, soybeans and wheat prices are expected to drop as much as 15 per cent, according to Chicago Tribune

Now see 10 grocery foods to skip if you’re trying to slim down in 2012 >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.