U.S. beef prices have hit record highs while the country's cattle herd has shrunk to its smallest size since the 1950s. The supply crunch directly drives up consumer costs for steak and ground beef, but expanding herds won't be quick — ranchers face drought, high feed costs, and processing bottlenecks that make scaling up difficult. The structural mismatch between demand and available supply suggests prices won't drop until herds rebuild, which typically takes years of investment and favorable conditions.