Ground Beef Prices Hit Two-Year Low

MINNEAPOLIS (WCCO) -- Just in time for the Fourth of July, the price of a grilling staple is at a two-year low.

For the last several months, the cost of ground beef has dropped steadily. The most recent data from the Bureau of Labor Statistics has the price of ground beef around $3.70 a pound.

For Bishop Howard Hadley of Minneapolis, it means big savings for his holiday barbecue. Hadley spent Monday grilling at North Mississippi Regional Park for 30 family members.

"When you're raising a family, every penny counts. Fifty cents makes a big difference, especially when you get it in a large quantity of meat," said Hadley.

That savings has led to an increase in ground beef sales at Sentyrz in northeast Minneapolis.

"Days ahead of the Fourth, we've been blowing through the beef. Really been going good," said Thomas Lundgren of Sentyrz.

The price of a pound is around $3.70, which is a significant drop from last year when ground chuck soared over $4.00.

"It's in the 50 cent range. Fifty cent range, 75 cent range on price," Lundgren said.

According to industry insiders, the decrease in price isn't so much demand but rather supply. Feed costs are down allowing ranchers to hold onto cattle longer and expand their herd. That means more beef coming to market with more awaiting processing.

While Howard appreciates the savings, a surge in price wouldn't impact his decision to serve ground beef during his Fourth of July meal.

"It's a staple. We got to have the hamburgers. A picnic isn't a picnic without hamburgers," Hadley said.

Industry experts believe the low prices will remain steady through the fall.