Source:  Tom Johnston, MEATINGPLACE.COM, 5/24/10

Recent media reports around spiking ground beef prices point to the possible trend of fast-food restaurants shifting to chicken features, but some economists aren't so convinced.

Omitted from such reports, analysts Steve Meyer and Len Greiner wrote late last week in their Daily Livestock Report, is the fact that prices for chicken, as well as pork, also have increased this year.

"For all the talk of escalating ground beef prices, the relative price of ground beef to the price of chicken breast is actually very close to the levels seen in the past three years or the five year average," they wrote.

Meyer and Greiner said the ratio has held up well despite grinding beef prices falling — as they tend to do in late May — in the days preceding their report.

Meanwhile, the value of the Australian dollar also sunk, which could trigger increased exports of grinding beef to the U.S. market, loosening supply and reducing prices.

"It is possible that some large chains have favorable chicken contracts on their books, which could lead to more chicken offerings relative to beef," the analysts wrote. "However, those looking to lock in prices at this time will find that chicken is no bargain either."

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