Beef costs soar 15% year-over-year, Texas food industry struggles

Photo credit: TPR.com

HOUSTON — At 16, Adam Mata is juggling school, extracurriculars, and life on the farm, where he is currently caring for a pregnant cow. Speaking during the Houston Livestock Show and Rodeo on March 9, Mata reflected on the lessons of responsibility and time management that ranching has taught him.

“The schedule is overwhelming at times,” Mata said. “But just keep pushing through, and I promise you the light of the tunnel will be there every time.”

Ranching has become increasingly difficult due to economic pressures and supply chain challenges. The U.S. Department of Agriculture (USDA) reports that farmers’ debts are rising faster than assets, while the national cattle supply has fallen to its lowest level since 1952. This shortage has contributed to a 15% increase in beef prices since last year, with projections for a further 5.5% rise in 2026.

“Beef prices are high, but the cattlemen have not received that money,” said Daniel Driver, another cattle rancher at the rodeo. Rising costs for feed, medicine, and land have left many young and small-scale farmers dependent on donors to make ends meet, Mata added.

Financial pressures across the supply chain

Rising beef costs are affecting not just ranchers but also local restaurants and barbecue vendors. At the Houston Livestock Show and Rodeo’s World’s Championship Bar-B-Que contest, G.H.’s Outlaws, run by brothers Glennard Hannible Hart Jr. and Glennard Earl Hart, reported spending $4,000 in a single day to cover meat and operational costs.

“We spend more each year just to keep up with costs, and $5 a pound for meat is steep, but it’s necessary,” said Junior Hart, chief cook of the team. Despite the financial pressures, the brothers continue the family legacy and rely on community support and donors to run their barbecue operations, which they describe as voluntary and community-driven.

According to the Texas Restaurant Association, the restaurant industry has faced a tough two years with inflation driving up costs for food, labor, utilities, insurance, and other essentials, resulting in decreased profit margins for over half of surveyed restaurants.

Both young ranchers like Mata and local food entrepreneurs are navigating a challenging market where rising prices, tight supply, and economic pressures test resilience, resourcefulness, and community support.

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