Record cattle prices are threatening to push steak off the menu and take the sizzle out of beef sausages.

Some beef cuts have spiked by as much as 50 per cent in the past six months thanks to strong overseas buying – driven partly by the softening Australian dollar – and drought conditions.

The cost of meat is being driven up by record cattle prices, and Toorak butcher Peter Bouchier is feeling the pinch. Credit:Simon O'Dwyer

The big price rises are putting the squeeze on margins in the meat processing industry and sparking warnings that shoppers need to get used to paying more for beef.

Butcher Peter Bouchier​ admitted it was very difficult to pass on the big cost increases to shoppers.