Beef prices in the United States are climbing to record levels as the national cattle inventory sinks to its lowest point in more than 70 years, adding further pressure on retail prices for consumers. According to the Financial Times, the average price of a pound of ground beef reached US$ 12.77 in U.S. cities in March, up 12.8 percent year on year and the highest figure on record, Department of Labor data show. Raw steak prices also set a record, averaging US$ 24.21 per kilogram.
Labor and insurance costs have risen as well, and even record high average carcass weights have not offset the drop in animal numbers.
“Beef is facing the most challenging market conditions we have ever seen,” said Donnie King, chief executive of Tyson Foods—the country’s largest meat processor—when presenting second quarter results.
Tyson reported that customers are shifting toward lower quality beef cuts or cheaper proteins such as chicken, after the average price of its beef products jumped 8.2 percent between February and April alone. That switch cost Tyson’s beef division US$ 181 million in the six months to March, even as chicken sales exceeded analysts’ expectations. Source: Beef Point
