Source: Chris Scott, MEATINGPLACE, 6/25/18



Prices for beef and pork fell slightly between April and May, while poultry prices were flat, according to USDA’s latest Consumer Price Index (CPI) for food.

Beef (and veal) prices decreased 1.1 percent, although lower prices have not yet been realized at the retail level because it takes time for price changes at the farm and wholesale level to pass through, the CPI report noted. Prices in May were 2.6 percent higher than in the corresponding period one year ago and retail prices for beef are expected to increase by between 0.5 percent and 1.5 percent for 2018, USDA economists reported.

Similarly, pork prices fell by 0.1 percent from the previous month, although they are 0.4 percent higher than May of 2017, the CPI report said. Lower prices for beef are most likely adding pressure to lower pork prices as consumers make meat substitutions, the report added. Pork production is expected to continue to expand this year as more pork processing facilities come on line and pork prices are expected to decline by 1.0 percent – or remain flat – for all of 2018, the report said.

Poultry prices were flat between April and May and were 0.5 percent higher than in the same period in 2017. The CPI report said poultry prices may increase at the retail level, but price increases are still expected to be lower than the 20-year historical average of 2.0 percent. For 2018, poultry prices are expected to increase an additional 1.5 percent to 2.5 percent, the report added.

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