Demand may slip on higher US meat prices

Higher prices for US pork, beef and poultry could reduce shoppers' appetite for meat this year even though spring and summer often see rising meat demand as grilling season fires up.

Consumer demand for meat may slow at a time of year when it usually peaks, industry experts said.

With prices climbing for pork chops, strip steaks and chicken breasts, consumers are likely to put less meat in their shopping carts, at least the pricier cuts, said US meat industry experts.

According to analysts, food prices rose 0.2% in April, but that was led by a 1.4% increase in meat prices, the largest gain in six years. Industry experts have predicted prices at the retail level are set to surge.

Rising livestock feed costs, partly due to corn demand for ethanol, smaller herds and rising demand from China have contributed to higher prices that include a 25% jump in wholesale pork prices over the last year. In the same period beef prices rose 22%, USDA data show.

Retail prices in many cases are just now catching up, leaving some US meat company executives speculating over how the summer season meat sales will fare.

"It's too early to tell right now," Hormel chairman and chief executive officer Jeffrey Ettinger said. "In many cases we just put through some of those price increases. My guess is you will see some volume declines."