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Americans spending more on 4th of July cookouts

It’s going to cost a little more to host a 4^th of July cookout this summer, according to Rabobanks’s 2024 BBQ index.

According to Rabobank’s 2024 BBQ Index, a 10-person barbecue will cost a record $99, up 2% from last year.

“While at face value, 2% seems modest, it comes after a 29% increase in overall costs for our barbecue since 2019,” Senior Analyst Tom Bailey says.

Retail beef prices continue to be impacted by herd contraction. Despite declining slaughter rates, Senior Analyst Lance Zimmerman says carcass weights have increased year over year by 36 pounds.

“As feed prices have come down, we fed cattle longer, we’ve raised them to a later day of age and we’ve been able to increase production per head,” he says.

Beef demand has remained strong despite record prices as consumers seek bargains in the meat case.

“They’re instead substituting in with more ground beef and lower quality steak cuts that they can put on the grill or serve on the smoker for friends and family during this grilling holiday season,” Zimmerman says.

Hamburgers remain a top choice for many, though Senior Poultry Analyst Christine McCracken says chicken is finding its way onto grills as beef prices soar.

“Whether that’s leg quarters or thighs, or if we’re selling some ground product to put on the grill, chicken is an affordable option and retailers recognize that,” she says.

Surging demand for butter has also led to higher ice cream prices, as demand for cream itself remains high. Senior Dairy Analyst Lucas Fuess says weaker cheddar output and record exports have also driven up the cost of cheese.

“I do not expect that trend to persist into the second half of the year as we are seeing increased capacity, either from new cheese plants opening or already existing cheese plants expanding,” he says.

When it comes to beverages, Senior Analyst Jim Watson says beer inventories remain elevated, putting pressure on beer pricing.

“This is still completely a COVID Hangover,” he says. We ran out of stock, and everybody stocked up way too much afterwards, then sales slowed down and we’re having a tough time working through this inventory issue in the market.”

The price of soda has increased despite flat volumes and Watson says consumers are ditching the 2-liter bottles for the 12 packs of mini cans.

Experts say it’s likely the last time we’ll see a summer cookout cost under $100.