Not all costs are going up every day! Meat Prices Fall!
Todays post is taken from the SafeSourcing October News Letter written by Gayl M. Southard, VP Administration at SafeSourcing.
The COVID-19 pandemic sickened many meat packing workers earlier this spring which forced factories to shut down. Fast forward and the price for ground beef and pork loins have returned to pre-pandemic prices. The price for chicken wings and prime rib are cheaper than before the pandemic started. The rise in production and lower overall demand are pushing prices down.
Gordon Foods Service Inc., one of the largest U.S. restaurant distributors, is selling beef for half what it cost a few months ago. B&R Stores, Inc. restricted the amount of beef people could purchase in the spring but have recently put it on sale for a discount. The same factors that drove prices up in the springtime now are driving prices down. Plant shutdowns which hurt production in the spring have now led to a backlog of livestock. Slaughterhouse shutdowns in April and May that cut deeply into meat production, processing has resumed now. Tyson Foods Inc., the largest meat company by sales, reported an estimated one million cattle and three million hogs remain backed up on US food lots.
If you’d like more information as to how SafeSourcing can help you mitigate price increase, please contact a SafeSourcing customer services associate.
Jacob Bunge and Jaewon Kant, WSJ, 9/21/2020