The US is facing a major cattle shortage: US cattle and calves inventory is down to ~85 million, the lowest since 1951, according to the USDA. The herd has shrunk by ~45 million from the 1975 peak of ~130 million and ~10 million since 2020. As a result, beef and veal prices rose +15% YoY in January, marking one of the fastest increases in the food basket. By comparison, chicken prices rose just +1.1%, while milk prices were roughly unchanged. At current herd levels, even if ranchers begin expanding, the new supply would not reach grocery shelves until 2028 at the earliest. The US cattle crisis is driving beef inflation to unprecedented levels.