March trade data helped show that consumers continue to buy beef despite high prices. Tyler Cozzens, director of the Livestock Market Information Center, said the Beef Demand Index jumped significantly in early 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 actually increased 10 points, or about seven percent, from the prior year, so it was a big jump there. 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.”
The jump in demand happened despite prices that continued rising in the first quarter.
“Now, stepping back, the rise in the All-Fresh Beef Demand Index during the first quarter of 2026 occurred while the All-Fresh Beef Retail Price averaged $9.55 per pound. So, that was a record, and actually an increase of $1.25, or 15 percent, from the previous year. Also, more recently, the April All-Fresh Retail Beef Price was a record at $9.64. That was actually an increase of $1.14 per pound, or 13 percent from last year. The record All-Fresh Retail Beef Price for April was largely driven by records for ground beef, which was $7.06 per pound in April. Roasts were also a record at $9.41 per pound in April, and we also saw a record for stakes at $13.02 in April.”
A significant factor in the beef market could be drought in several of the biggest production areas.
“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.”