Beef lovers are dealing with sticker shock as the drought in Texas has pushed the cost of red meat to an all-time high this year.

Texas ranchers are taking a big hit because of the drought. At Adam's Supermarket in Houston, all of their beef is from Texas. Riad Younes, the store's owner, said it has been difficult supporting the state with the rising cost of beef.

"I 100 percent support Texas. I support everything from Texas," Younes said. "I've noticed prices have gone up 30 to 40 percent. That really affects us."

Last year, Younes said he paid $1.80 per pound. Six months ago during the summer months, his beef prices topped out at $2.49. Thanks to the recent rains, prices have dropped somewhat to $2.33 per pound.

Even with the rain, experts said the dip in prices won't last long. The severe drought continues to be a problem, plus, strong foreign demand from a falling dollar makes U.S. shipments less expensive to foreign buyers, causing prices to rise.

The USDA's 2012 projection for beef prices shows a 5 to 6 percent increase—some experts even predict a 10 percent spike.

Still, Younes is keeping his prices the same and taking the hit himself.

"They notice. People say I know prices have gone up but you've kept your prices which is good," he said.

Texas has seen its cattle drop 11 percent during the past year—the biggest decline in 150 years.