Beef, pork and poultry retail prices are expected to slide overall for 2017, but all will climb by single digits in 2018, the USDA’s Economic Research Service (ERS) projected.
In its monthly Consumer Price Index for Food report, ERS forecasts that beef and veal prices should decline 2 percent to 1 percent in 2017, but increase between 2 percent to 3 percent in 2018. The agency noted that June prices were 0.8 percent lower than the comparable period in 2016 as production increased. The anticipated beef production for 2017 is now lower than originally forecast, but should still top 2016 levels, ERS said.
Similarly, ERS said that pork prices were 0.8 percent lower in June this year versus June of 2016 and lower beef prices are likely adding pressure to lower pork prices along with large pork supplies. Those factors should drive pork prices down between 1.5 percent and 0.5 percent for 2017, but pork prices should increase between 1.5 percent and 2.5 percent in 2018, ERS predicted.
The agency said the story for poultry is slightly different because of high broiler production but lower overall weights, which ERS said should drive prices higher by between 0.5 and 1 percent for all of 2017. With larger birds also commanding higher prices at retail this year, overall poultry prices should climb an additional 2.5 percent to 1.5 percent in 2018.
Source: meatingplace.com, 7-26-2017