February 25, 2005

US consumer beef prices on the rise

US beef prices are expected to peak as trade possibly resumes with Japan. In 2003, that country banned US beef after a mad cow scare in Washington state.

By starting to sell overseas to Japan, the US will have less for domestic consumption, possibly bringing up the price of meat.

And it looks like the average consumer could feel the pinch as the prices inch upward.

The US beef industry expects an economic boost should the demand rise for US beef although consumer habits are expected to set the limits on those soaring prices. Consumers may well turn to other meats, like chicken or port.

The US is expected to lift an embargo on Canadian beef in March. A potential decrease in prices would be short-lived once Japan re-opens its border.

Japan has agreed to accept a specific kind of US beef that, they believe, is low-risk for mad cow disease.