Higher beef prices headed to SC as Iran war rages on. Here’s what to know

Prepare your wallet, because you might see an increase in beef prices in the coming weeks.

Following a surge in oil prices stemming from the ongoing military conflict in Iran, some consumers may have initially thought they only had to worry about pain at the pump. But rising energy costs inevitably drive up the price for many other items, such as beef.

While several factors are contributing to this trend, the war is further straining affordability.

Here’s what you should know:

How gas prices affect the SC beef market

It takes a lot of transportation to sell beef in SC.

SC primarily deals with raising the calves that will eventually become the finished product, according to Mathew Fischer, an agricultural business expert at Clemson Cooperative Extension.

To bulk up these animals, calves are usually sent out-of-state, toward centrally located states like Texas. Once they reach market weight, livestock is purchased, processed and transported to distribution centers before finally returning to South Carolina grocery stores.

After thousands of miles of transportation, rising gas and diesel prices will likely increase production costs.

“Increased gas and diesel costs will have downstream effects on the various sectors in the industry,” Fischer said.

Even for SC beef that is sold locally, high energy costs add up over time, impacting everything from farm machinery to refrigeration.

The average price of ground beef could push past the price of $7.50 a pound, according to Forbes, a global media company. The average price of ground beef last month was already at $6.73 a pound, which is the highest it’s ever been.

While SC farmers might be struggling to absorb the increased production costs, some choose to maintain their prices.

Other factors in beef price increases

Beef prices were already at an all-time high before the Iran strikes, due to surging demand. Americans love to eat beef so much that cattle numbers are steadily decreasing.

The U.S. cattle industry often has periods of decline and expansion, but America’s cattle herd is the smallest it has been in 75 years. This is a growing issue since farmers are choosing to sell their animals for slaughter to keep up with demand rather than keeping the animals to grow their herd, according to a report from Farm Progress.

“If the demand is strong and the supply is short, you’re going to see increased prices,” Fischer said.

A recent report from the U.S. Department of Agriculture says that the projected outlook for beef production in the U.S. was lowered by 110 million pounds from last month to 25.810 billion pounds because of the decline.

What’s making the situation worse is the rising cost of feeding livestock in SC due to the persistent drought.

“We’re seeing a decreasing number of animals, and then, all of a sudden, we’re getting into some really serious drought conditions that we’ve been experiencing across the U.S. for many years,” Fischer said.

The cheapest way to feed cattle is letting them harvest their own grass. However, drought conditions in SC has made farmers spend more on growing their herd.

“Having to feed your animals when there is no grass due to drought really takes away from your bank account,” Fischer said.