May 30, 2011

Missouri's chicken and beef prices increase

Although Missouri costs remain lower than the national average, the prices of chicken and beef increased more in the past year than other regions in the US, according to the Missouri Farm Bureau.

All meat items, except sliced deli ham, cost more than last year, according to a survey by the American Farm Bureau. Ground chuck increased US$0.41, to a little more than US$3/pound, and bacon increased US$0.29, to US$3.80/pound. All surveyed meat prices were less in Missouri than across the country.

"Food prices fluctuate," said Diane Olson, Missouri Farm Bureau promotion and education director, adding that economic predictions call for retail food prices to rise modestly throughout the year.

"Tighter wholesale meat supplies are causing the price of meat to increase. Smaller livestock herds and poultry flocks contributed to price increases this quarter."

Americans are also consuming less beef, according to the USDA. Chicken ranks as the most consumed meat, with a calculated 83 pounds per capita eaten. Beef comes in at around 60 pounds.

The increased cost of those Memorial Day hamburgers and chicken breasts could mean a less-than-spectacular grilling season. However, it is a time of year that becomes Christmas for anyone in the meat business.

Tyson, the largest US meat processor, has said cooler weather and frequent rains caused slow meat sales in April. Tyson purchases cattle and hogs for its plants, but raises its chickens.

The increased costs for meat partially could be blamed on the rising costs of gasoline and ethanol. Plus, the Missouri Farm Bureau said the reserves of staple crops such as corn, soy and wheat have drawn down in recent years, due to consumer demand in developing counties, a growing biofuels industry and unstable growing conditions for crops.