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Beef, poultry prices jump in USDA’s latest consumer index
Story Date: 7/26/2012
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Source: MEATINGPLACE, 7/25/12
Beef prices were up 0.6 percent in June, while poultry prices increased 1.5 percent and pork prices fell 0.1 percent in the month, according to USDA’s latest consumer price index data.
The current severe drought in the Midwest is expected to reduce cattle herd sizes due to increased feed costs, which in turn should boost the retail beef supply and reduce prices somewhat in the short term, USDA said. As a result, USDA lowered its 2012 forecast for beef and veal price inflation to 3.5 to 4.5 percent.
Poultry, on the other hand, is expected to be among the first meat categories to reflect price increases due to the drought, USDA said, prompting an upward revision in its 2012 inflation forecast for poultry prices to 3.5 to 4.5 percent.
USDA said most of the impact of the drought is expected to be realized in 2013.
Beef prices are now 6.9 percent above last June, with steak prices up 8.1 percent and ground beef prices up 7.3 percent.
Poultry prices are 5.1 percent above prices last year at this time, with chicken prices up 4.2 percent and other poultry prices including turkey up 8.3 percent.
Pork prices decreased 0.1 percent in June and are 0.9 percent below last June's level. Retail prices have started to fall in line with wholesale prices, but a turnaround at all stages of production is likely as feed costs rise, USDA said.
The food-at-home CPI was unchanged in June and is up 2.6 percent from last June, while the food-away-from-home (restaurant) index increased 0.2 percent in June and is up 2.9 percent from last June. The year-over-year increase in the food-at-home CPI has fallen each month so far in 2012, indicating that food price inflation had slowed before the drought began, USDA said.
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