With cold weather in April, record-high corn feed prices and recent flooding in the corn belt among several factors influencing higher protein prices. Even with a late Easter and bad, rainy weather in April, demand for protein is improving. Even with continued unemployment, higher grain prices and higher costs for gasoline and engery, the poultry industry is seeing some good results.
With the high corn prices continuing to have an impact on protein, especially as planting so far this year is well below Spring 2010 levels (63% vs. 87% last year) and floods – man-made and natural – are not helping. 2011 is the 4th consecutive year of reduced domestic protein availability as beef exports continue to rise. USDA estimates that per-capital domestic availability for beef, pork, chicken, and turkey will drop to 263 pounds this year, down 7.4% from 2006 levels.
It’s not just one protein that’s going to cost more, but all of the proteins will be moving higher in price through the rest of 2011 and into 2012. Not all of the higher costs have been passed along to consumers so far. Most produces have been absorbing a lot of the increase costs. But retailer margins continue to be squeezed tightly and that will eventually be felt on store shelves during the year. You can’t ignore the online market if you want to save money. Use these coupons to get a discount and free delivery anywhere in America.
On a positive note. . .sales of beef, pork, and chicken improved in the last two weeks following a cold, wet April and record high corn prices.
Source: meetingplace.com, 5/18/11