Independent Grocers Fight to Keep Meat Affordable

Americans love their meat, with U.S. meat department sales up 4% in 2024 over the previous year (more than $127 billion), according to NielsenIQ. In fact, Americans eat an average of 59 pounds of beef per person per year and roughly 68 pounds of chicken per person per year. But with herds shrinking and meat counter prices soaring, retailers and consumers are looking to adapt to the new reality of high costs and shifting supply chains.

A Perfect Storm

The reasons behind the rising costs are multifaceted. Over the past several years, U.S. cattle producers have faced significant challenges, including persistent drought conditions in major cattle-producing states. These hardships have compelled many ranchers to sell their herds earlier than usual simply to weather the tough times, AgAmerica Communications Manager Shelby Bass told MarketWatch.

Global pressures exacerbate the issue. The war in Ukraine has disrupted fertilizer markets, driving up the cost of feed and pasture maintenance, and supply chain volatility, trade policies, and inflation further ripple through production.

The results of these conditions are numerous: the lowest mid-year U.S. cattle count since at least 1973 (about 94.2 million cattle and calves in the U.S. as of July 1 2025); the projection that beef and veal prices will increase by 11.6% in 2025; and this week, the USDA released a new plan to fortify the American beef industry and lower prices for consumers.

While it's too early to tell how the USDA's plan will impact prices in the long term, one thing is certain: right now, many customers across the country are feeling the pain of rising meat prices. And independent grocers like Jimmy Wright, owner of Wright’s Market in Opelika, Alabama, are caught in the middle.

“I can’t buy it for a dollar and sell it for a quarter,” Wright said. “We’re doing everything we can to keep prices as reasonable as possible, but it’s tough.”

Rising Prices

Wright has watched prices climb to unprecedented levels in his decades of running a grocery store.

“We’ve always been the meat operator in town,” Wright said. “It’s been our claim to fame. But now, when I see a chuck roast at $9.49 a pound, something that used to be $2.99 or $3.99, it’s hard not to feel like something’s broken.”

For Wright, beef is more than just a product; it’s a key driver of business.

“When customers came for meat, they’d do the rest of their grocery shopping while they were here,” he explained. “Now that beef prices have doubled or tripled, that driver’s gone. You can feel it in the store.”

In Pemberville, Ohio, Jake and Bob Frobose operate Frobose Meat Locker and the Frobose IGA Pemberville. The family started their meat locker business in 1999 and took over the IGA’s meat department in 2007 before purchasing the entire store in 2012. The Froboses have leveraged their vertically integrated operation to mitigate some of these challenges. By raising their own cattle (about 400-500 steers annually), they maintain a steady supply, even as market prices climb.

“We’re kind of unique in that we haven’t had a shortage problem,” Bob Frobose said. “We just adjust pricing to reflect the high value of the product. Even though we raise it ourselves, the value of the product is still very high.”

Their meat department remains a cornerstone of their business, drawing customers to the store for its quality and variety, and beef has remained a high-demand items despite price hikes.

“Beef is still in great demand,” echoed Jake Frobose. “We haven’t seen much of a dip yet, but the pricing is definitely challenging for customers.”

Consumers Push Back and Retailers Pivot

In Alabama, consumers are adjusting their habits and cutting back on their beef consumption as prices rise. In response, Wright’s Market has scaled down beef displays to make room for more affordable proteins like pork and chicken.

“Chicken’s still a decent value,” Wright said. “We’re sourcing 20-pound boxes of chicken thighs and drumsticks at bulk prices and passing those savings on. We’re trying to keep protein in the cart, it just might not be beef right now.”

The Froboses have also leaned into bulk sales to maintain affordability.

“We sell a lot of large-quantity packaging, like 10-pound packages at a discounted price per pound,” Bob said. “You might sacrifice a little gross profit, but you end up with more sales throughout the week.”

Their strategy includes offering package deals, such as a “meat of the month” combo for $359, which provides customers with a variety of freezer-ready cuts at a perceived value.

“It’s a mental thing,” Jake explained. “An 8-ounce steak for $11 feels better than $22 a pound, even if it’s the same cost.”

In Pemberville, a town of less than 1,500, the Froboses have carved out a niche with their in-store smokehouse, producing 150 varieties of sausages, including 40-60 types of brats available daily.

“We can make 2,500 pounds of brats a week,” Bob said. “It’s labor-intensive but very profitable.”

This focus on specialty products, combined with bulk sales and portion cutting, allows them to maintain customer loyalty despite high beef prices.

“If you provide something customers see as a value, you really hit a home run,” Jake said.

A Shift on the Dinner Plate

At Wright’s Market, beef tray sizes have been reduced to make price tags more approachable.

“Sometimes that helps, sometimes it doesn’t,” Wright admitted. “Customers see one high item, say, $4.99 ground beef, and they think the whole store’s gone expensive.”

To combat misconceptions, Wright plans to release a video explaining the cost increases, emphasizing transparency.

“People appreciate honesty,” he said.

The Froboses, meanwhile, have invested in a 24-foot service meat case to showcase their offerings, allowing for portion cutting that elevates the price per pound while still appearing as a value to customers. Their meat department’s success has driven record sales, with August 2025 marking a record month for the Pemberville IGA.

“Our meat department drives our grocery store,” Bob said. “We’ve set records during COVID, and we’re breaking them again now.”

Looking Ahead

If shortages worsen, Wright fears independent grocers could be pushed out of the supply chain.

“When beef gets scarce, who gets it first?” he asked. “Restaurants like Texas Roadhouse, then the big box stores. Independents like us could end up last in line.”

For now, Wright relies on long-standing supplier relationships and a pragmatic outlook.

“We’ve been through tough times before,” he said. “We’ll get through this one, too. But we’re in for a challenging couple of years.”

The Froboses remain optimistic. Their unique position as both producers and retailers, combined with a strong network of suppliers and employees, has allowed them to adapt quickly.

“Challenges mean there’s an opportunity,” Bob said.

By shifting advertising from costly newspaper ads to in-store promotions and social media platforms like Facebook, they’ve saved $75,000 annually while boosting sales.

“We get a hot buy on Monday, push it on Facebook, and customers are there within minutes.”

As the meat industry navigates this turbulent period, businesses like Wright’s Market and Frobose’s Pemberville IGA demonstrate resilience through innovation, transparency, and a focus on value. Whether it’s offering bulk deals, diversifying protein options, or leveraging local production, these retailers are working to keep the American cookout alive, albeit with a different mix of meats on the grill.

IGA is preparing additional information and resources on this topic, in consultation with our industry partners. Look to The IGA Minute in the coming weeks for pricing resources, including how to talk to shoppers about pricing and supply issues.