Demand for beef is at an all time high, mainly because years of drought have cut herds to their lowest levels in more than 60 years.
SIOUX FALLS, SD (NBC) - Beef prices continue to soar as a result of drought in much of the country. Supply is down, but demand for beef is still high.
Life is good at Sioux Falls Regional Livestock. Demand for beef is at an all time high, mainly because years of drought have cut herds to their lowest levels in more than 60 years.
That means livestock producers are getting paid, but that also means it's coming out of someone else's pocket.
In February, the cost of USDA choice-grade beef reached a record retail price of $5.28 per pound, compared to nearly 5 dollars at the same time last year, and nearly 4 dollars in 2008. That's the highest price for beef since 1987.
General manager Tyler Honke at Cleaver's in Sioux Falls says even though the price of beef costs more, in order to stay competitive, they're the ones taking a hit.
Because they try to keep their prices down, they don't expect to see a hit in the number of customers walking through their doors.
In the next few months, we'll see just how much people are willing to pay.