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Source: Janie Gabbett, MEATINGPLACE.COM, 9/22/08
Pork, beef and chicken producers are just getting started cutting production in response to higher feed grain prices and as they cut back, expect prices of all three proteins to rise in 2009 and 2010, according to David Maloni, the chief commodity research analyst for the American Restaurant Association.
On a conference call hosted by Lehman Brothers, Maloni predicted boneless skinless chicken breast prices could average 15 percent to 30 percent above current levels over the next two years. He said both beef and pork prices could rise 5 percent to 10 percent above current prices during 2009 and 2010.
Maloni warned the recent retreat in feed grain prices would not last. Estimating that cattle feeding costs rose 48 percent in the 2007/2008 (September-August) crop year, he predicted an additional 16 percent increase during 2008/2009.
For hogs, he estimated feeding costs rose 51 percent in 2007/2008 and predicted an additional 13 percent increase in 2008/2009.
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