The Economic Research Service of the US Department of Agriculture recently issued its latest estimates of beef and pork retail values for the month of September.

 

Pork
 

Pork retail values continued to appreciate in September and at US $2.898/retail pound, they are currently at the highest level they have ever been. Retail pork prices have been increasing steadily all year and in September they were 6.3% higher than a year ago.

 

Despite the recent increase in retail pork prices, it is easy to lose sight of the fact that pork prices have appreciated at a much slower pace than beef prices. If we use January 2002 as a benchmark, current pork prices have increased only 7%. Indeed, as late as May of this year, retail pork prices had increased only 2% compared to January 2002.

 

Retail pork prices have risen about 5% since May levels and there is little question that the recent increase in pork wholesale values is starting to filter into retail. A combination of higher pork prices at the retail level and increased pork production continues to indicate that pork demand at the US retail level remains good.

 

Beef
 

Beef retail values continue to be significantly above year ago levels. At US $4.082/retail pound, September beef retail values are 10.1% higher than a year ago. Retail beef prices have declined in recent months and they are currently lower than June and July levels.

 

Retail beef prices continue to be significantly higher than beef prices a couple of years ago. Compared to January 2002, retail beef prices are still about 23% higher.

 

It would be easy to interpret the recent decline in beef retail prices as a sign that beef is becoming more competitive with pork and compared to June or July levels, it may be. However, beef prices at the retail level have appreciated much more than pork prices. While retail beef prices may be off the peaks reached last November, they are still the highest September prices on record.