As Inflation Pushes Consumers to Cheaper Meats and Poultry, Beef Prices Fall in July

Beef prices have been falling for the moment, which is good news for American consumers, who are now favoring chicken as a cheaper source of protein, since inflation spiked months ago.

Consumer preference has been moving towards lower-priced meats and other protein sources like chicken.

The average steak price is among the most expensive in grocery stores, however it is currently falling after a year of increases.

Although overall food prices increased by 10.9 percent in July from the same month last year, the price of uncooked beef steaks fell by 1.2 percent over the same period.

The prices of sirloin and round steaks fell 1.4 and 2.6 respectively.

However, ground beef, which is the most affordable of beef products and has been in high demand for many years, increased by approximately 7 percent over the same period as a roughly 20% increase in January.

Retail beef price fell by 0.7 percent in the period ending Aug. 7. This was after prices dropped 1 percent over the preceding four-week periods. It is the first monthly drop since June 2021..

Even after two months of consecutive declines in beef prices, packaged beef prices remain roughly 30% above their 5-year average according to USDA.

While the prices of steaks are not as good, the demand for other meat and poultry has risen.

” The demand for chicken remains high,” Donnie King, CEO of Tyson Foods told analysts Aug. 8.

King stated that the price of an entire chicken rose by 3 percent. A piece of chicken breast has gone up 0.9 per cent, and pork chops have gone up 2.6percent. Grade A eggs, however, are up 8.5%.

Many families in America have had to change their habits of consumption this year as inflation continues its rise.

The rising cost of food and other consumer goods has been a result of increased transportation costs, ingredient shortages, and labour shortages.

The biggest gains have been seen in the meat- and dairy sections, however, as beef prices continue to plateau, industry executives predict that consumers will be able to find better deals.

The pace of inflation slowed slightly in July, from an all-time high of 8.5 percent in 2004 to 7.5% in 2007. This was due to lower gasoline prices and a decrease in airline fares.

Grocery Prices increased by 1.3 percent in July, whereas the price of eating out at restaurants rose.

While beef supplies are increasing due to improved staffing in meat plants, a tight labor market, higher turnover rates and high levels of absenteism following the pandemic continue to limit the industry’s processing capacities.

Meanwhile many cattle were moved to processing plants by ranchers as they reduced the herd size due to drought conditions across the country. This is partly responsible for the increase in beef sales at grocery stores.

This could lead to decreased beef cuts due to tighter cattle supplies over the coming months.

The U.S. beef production will decline in 2023, because of the limited supply, which ultimately drives up the beef price. According to the USDA and agricultural executives.

King stated that the company will pay more to import cattle into 2023, and through 2024 as supplies tighten.

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