If you’ve noticed your favorite steak dinner or lunchtime burger costing more lately, you’re not imagining things. Across the U.S., beef prices have hit record highs—and the effects are being felt from grocery stores and restaurants to the freight and logistics companies that help move goods across the country. 

At Century Express Virginia, based in Norfolk and Portsmouth, we understand that shifts in the agricultural and supply chain landscape impact every link in the logistics chain. As a premier trucking and drayage provider operating near the Port of Virginia, we keep a close eye on these trends so we can help our clients navigate them with agility and foresight. 

So what exactly is driving the current surge in beef prices—and what does it mean for businesses, consumers, and logistics companies alike? 

A Shrinking Cattle Supply 

 The U.S. beef cattle inventory has dropped to its lowest levels since 1952, according to the Department of Agriculture. As of early 2025, the beef cattle population stands at just 27.9 million—a 13% decrease since 2019. Despite this, consumer demand for beef has remained steady. 

This mismatch between supply and demand has driven average beef prices to all-time highs. In May 2025, ground beef reached $5.98 per pound—a 16.2% increase from just a year earlier. Cuts like sirloin and chuck roast have followed suit. 

 The Long Tail of a Decade of Struggles 

The reasons for the supply squeeze stretch back years. In 2014, ranchers saw strong profits and expanded their herds. But increased supply led to falling prices, and then drought conditions hit the western U.S. hard. Less grass for grazing meant higher feed costs, forcing ranchers to scale back. 

Many of these ranchers are small business owners. The average beef herd in the U.S. contains just 47 cattle, and only around 10% of operations have 100 or more. With limited capital reserves, many small ranchers simply couldn’t weather the combination of rising costs and reduced revenue. 

The COVID-19 pandemic only made things worse. Meatpacking plant closures and labor shortages disrupted processing and reduced demand from processors, depressing cattle prices further. 

Slow Recovery, Ongoing Pressure 

Now that cattle prices are rebounding, ranchers are beginning to rebuild their herds. But it takes two to three years to raise a calf to slaughter. That means the current shortage won’t be resolved overnight, and elevated beef prices are likely to persist into 2026 and beyond. 

Large corporations have responded in varied ways. Some—like Walmart and Costco—are investing in their own meat processing facilities to control more of the supply chain. Others, including McDonald’s and Sysco, have taken legal action against large meat processors, alleging price manipulation. Some lawsuits have already resulted in multimillion-dollar settlements. 

What It Means for Freight and Logistics 

At Century Express Virginia, we see firsthand how these shifts in the food industry ripple through supply chains. As beef prices climb, retailers and distributors adjust their strategies—bundling products, consolidating shipments, or changing sourcing altogether. 

Food service companies may require more flexible storage or transloading solutions to handle variable order sizes. Restaurants and grocery chains are rethinking their inventory models. These evolving needs put pressure on logistics providers to stay adaptable, responsive, and cost-efficient. 

Because we operate seven days a week and are deeply embedded in the Port of Virginia ecosystem, we help our clients meet those challenges head-on. Whether it’s ensuring timely drayage of refrigerated containers or offering secure short-term storage for bulk meat shipments, we deliver inventive, on-the-ground solutions tailored to shifting market realities. 

Adapting at Every Level 

From major grocers to small meat retailers, businesses across the food industry are adjusting how they manage, sell, and source beef products. Whether it’s reducing portion sizes, bundling product offers, or offering discounts on bulk orders, companies are finding creative ways to support customers while maintaining margins. 

These grassroots adjustments show how deeply intertwined agricultural, economic, and logistical systems have become. Every change at the ranching level influences processing, distribution, and ultimately how logistics providers like Century Express Virginia deliver value. 

Moving Forward: Navigating with Insight 

There is no quick fix for the beef supply chain. But businesses that stay informed and agile will be best positioned to weather the volatility. At Century Express Virginia, we believe that “attitude makes the difference.” 

Our team, with its wide range of expertise and deep roots in the port community, works to ensure every client can adapt to changing economic conditions with confidence. From drayage to storage and transloading, we help you move with intention—even when the market gets tough. 

So whether you’re moving cargo from port to warehouse or recalibrating your supply chain around the rising cost of beef, we’re here to help keep your business resilient. 

Contact Century Express Virginia today to learn how we can help streamline your supply chain in a time of rising costs and shifting trends.