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The Journal.

How Beef Got So Expensive

10 Jun 2026

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What factors contributed to the rise in beef prices?

7.102 - 28.449 Ryan Knudson

Omaha, Nebraska, 6 o'clock dinner reservation. The Thomas family, party of six, is settling into one of the great old-school steakhouses in the Midwest. It's the kind of place with low lighting and heavy chairs. The room smells like brown butter and seared beef fat.

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29.13 - 35.438 Patrick Thomas

It's old-timey. It's kind of got the wooden exterior. The floors are creaking when you walk in.

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35.789 - 40.996 Ryan Knudson

That's our colleague Patrick Thomas, as in the Thomas family, party of six.

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41.016 - 47.184 Patrick Thomas

You've kind of got that brassy Sinatra type of music, old-world type of steakhouse.

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47.644 - 55.114 Unknown

I'm going to go from the most tender all the way up to our most heavily-barbled cut. So our most tender cut here will be the filet.

55.246 - 57.269 Ryan Knudson

So what brought you to that steakhouse in Nebraska?

57.729 - 62.055 Patrick Thomas

My family still lives out there. My brother was actually graduating high school.

62.496 - 81.642 Ryan Knudson

Oh, wow. Congratulations. I heard his name is Ryan. It's another Ryan. What a great name. How's your steak?

81.689 - 85.495 Unknown

My steak's delicious, very tender and juicy.

Chapter 2: How has the cattle auction scene changed recently?

177.708 - 194.085 Unknown

The reason beef is so expensive right now has everything to do with the animals.

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194.946 - 214.101 Ryan Knudson

Our colleague Patrick grew up in Nebraska, aka the beef state, and recently went to a cattle auction about four hours outside Omaha. If you've never been to a bull sale before, there's one thing Patrick says you need to watch out for. Flying poop.

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215.283 - 225.501 Patrick Thomas

You have the bull running into the ring, who kind of trots out right away, he's kicking up some of the manure, and sometimes, you know, he runs by and the manure will kind of fly up a little bit, so you got to be careful if you're in the front row.

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225.721 - 231.547 Ryan Knudson

Yuck. Right now, the best cattle in America are worth a fortune.

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231.587 - 234.992 Unknown

Here at the T.D.

235.132 - 263.587 Ryan Knudson

Angus bull sale, ranchers pay astonishing amounts of money for breeding bulls, the fathers of future herds. Some will sell for as much as a new Cybertruck. On this spring day, all eyes in the room were on a hulking bull named the Man in Black. His breeders call him a, quote, man amongst boys. In the end, he's sold for $75,000. No bull.

264.469 - 272.025 Unknown

Sold the bull, $75,000, $75,000.

273.305 - 296.65 Ryan Knudson

The man in black is basically the start of the supply chain. He'll go on to father potentially dozens of calves each year, calves that will make up part of the nation's cattle herd. But the cattle herd in the U.S. has dramatically shrunk. It's now at its smallest size in 75 years. There simply isn't enough cattle. And America wants beef. The shortage is making the auctions really competitive.

297.271 - 305.278 Patrick Thomas

You have guys been described as vicious because you'll have, you know, sometimes personal vendettas take place if they want to drive the price higher on somebody.

Chapter 3: What impact did COVID-19 have on the beef supply chain?

572.166 - 583.886 Ryan Knudson

A 500-fold increase in profit margins... With all that cash, ranchers have been able to hire more staff, pay down some of that debt they racked up during the pandemic, and upgrade old equipment.

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584.226 - 596.018 Sean Lockery

We have unprecedented times here in the cattle business right now. I mean, it's just, this business has just turned upside down overnight. I mean, it's unbelievable.

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597.019 - 627.021 Ryan Knudson

For the people raising cattle, these are boom times. Ranchers are riding high. But for everyone else in the beef business, not so much. That's next. If ranchers are finally on the winning end of cattle economics, there are a few folks who are losing.

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627.061 - 630.227 Patrick Thomas

The biggest loser right now is the meatpacker.

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630.287 - 642.151 Ryan Knudson

Remember that during COVID, there were lots of cattle and not enough capacity at meatpacking plants. As a result, the meatpackers were able to buy cattle for dirt cheap, and they were making lots of money.

643.012 - 652.151 Patrick Thomas

But now that the meatpackers are back up to full speed and cattle herds have shrunk... The meatpacker is losing about $300 per animal that goes through their plant.

652.171 - 652.692 Ryan Knudson

Ouch.

652.672 - 658.982 Patrick Thomas

Well, you have some of these big packers. I mean, JBS, Cargill, Tyson, they have plants that process 6,000 cattle a day.

659.102 - 659.362 Ryan Knudson

Wow.

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