| |
Source: Janie Gabbett, MEATINGPLACE.COM, 1/22/09
As consumers have shifted from eating at restaurants to eating at home, the demand for hamburger has gone up while steak demand has declined — a combination that has narrowed the spread between Choice and Select cutouts significantly.
In its Livestock, Dairy and Poultry Outlook report, USDA said in 2008 the Choice/Select cutout spread narrowed to well below both 2007 levels and the five-year average.
However, even as Choice beef wholesale prices have declined, retail prices have been slow to follow.
According to USDA statistics, retail Choice beef prices began 2008 at $4.10 per pound and climbed steadily to a new record of $4.53 per pound in August. However, while Choice cutout values declined by 14 percent from July to December, Choice retail beef prices remained at a near-record $4.51 per pound in both September and October before declining to a December low of $4.38.
For more stories, go to www.meatingplace.com.
|
