Ukraine introduces new legislation to protect pets.

High beef prices are squeezing American businesses and consumers

High beef prices are squeezing American businesses and consumers. Some businesses are forced to make tough decisions on how to cope with rising costs, while others are passing those costs onto consumers.

Rob Passio, owner of Lombardi's Prime Meats in Philadelphia, told FOX Business correspondent Jeff Flock on 'Varney & Co' that 'there's a limit to how much you can absorb into your margin before you say to yourself that you have to raise prices.'

Passio noted that beef prices in their butcher shop have not provoked disrespect from clients 'because they see them.'

Beef and veal prices have also risen

'They see inflation. They see prices. You know, everything has gone up,' said Rob Passio.

Inflation data from the U.S. Bureau of Labor Statistics, measured by the Consumer Price Index (CPI), showed that beef and veal prices rose 2.4% month over month and 7.6% year over year in February.

The overall CPI showed a 0.2% increase for the month and a 2.8% increase compared to last year.

Courtney Schmidt, sector manager at Wells Fargo Agri-Food Institute, told FOX Business last month that high beef prices are driven by a decrease in beef production in the U.S. alongside sustained consumer demand.

According to the U.S. Department of Agriculture (USDA), as of early January, there were 86.7 million head of cattle and calves on U.S. farms. The beef count decreased by 1% compared to the same period last year, totaling 27.9 million head, USDA reported.

'I know they are killing fewer cattle, trying to increase supplies needed for demand,' Passio noted.

As Jeff Flock noted on 'Varney & Co', some large companies are buying beef from Canada and Mexico.

President Donald Trump imposed a 25% tariff on goods entering the U.S. from those two countries on March 4, and recently made exceptions for Mexico and Canada on goods covered by the U.S.-Mexico-Canada Agreement until the end of April.

Such a tariff on imported beef 'will drive up the price,' Passio noted, adding that consumers 'will pay for it.'

'My philosophy is to sell as cheaply as possible to show a discount, value for the customer. And hopefully, you'll have more customers which will earn you more money,' said owner of Lombardi's Prime Meats Rob Passio.

In February, the average price for ground beef in the U.S. was $5.63 per pound, while the price for boneless ribeye steak was $11.90 per pound, according to the Federal Reserve Bank of St. Louis. These average prices were higher by 9.6% and 1.6%, respectively, compared to the same month in 2024.

Beef production forecasts in the U.S.

According to a report released by the U.S. Department of Agriculture this month, beef production in the U.S. is forecasted to be 26.685 billion pounds.

Daniella Genovese also contributed to this report.