Will the Run Up in Retail Meat Prices Continue? USDA Thinks So, Says Consolidation Isn't Fully to Blame

 

The price shoppers pay for items like meat at the grocery store are expected to continue the rapid rise. An updated Consumer Price Index (CPI) released from USDA Economic Research Service (ERS) shows wholesale beef prices climbed 14.2% from July to August of 2021, and price projections point to a possible 20% increase in wholesale beef prices this year.

The price projections released are for a wide variety of grocery store items. According to Farm Journal Washington Correspondent Jim Wiesemeyer, meat prices are expected to see the largest increase.

The updated ERS forecast shows prices for meats, poultry and fish now sits at 4.5% to 5.5%, which is up from the 4% to 5% posted last month. He says the main drivers are higher beef and pork prices.

“Contributing to the increase is what are now expected to be 6.5% to 7.5% higher beef prices compared with an increase of 4.5% to 6% last month,” reports Wiesemeyer. “Pork prices are now expected to also be up 6.5% to 7.5% from 2020 levels, up slightly from the forecast range in September of 6% to 7%. Poultry prices are forecast to rise 3.5% to 4.5% versus 3% to 4% in September.”

Beef Prices 

Wiesemeyer points out beef and veal prices have gone up 6.5% so far this year versus the same period in 2020, with prices in September up 17.6% from year-ago. Pork prices are up 6.3% so far in 2021 versus the same period in 2020. In September, prices were up 12.7% from year ago. One agricultural economist says bacon prices are one of the biggest sticker shock items at the grocery store right now.

READ ENTIRE POST