November 12, 2007

US beef sale declines due to competition from pork and poultry

US beef wholesale and retail have faltered due to negative economic news and the growing competition from pork and poultry.

The low wholesale pork prices, specifically hams, and also the decrease of chicken breast and wing prices, have affected the beef prices. Pork production this year has increased 3.1 percent.

Aside from lowered prices of pork and poultry, the decrease of beef prices have also been exaggerated with strong cattle slaughter and heavy carcass weights. US beef is pressured with weak economy and the increased pork and poultry production for the remainder of 2007.

Since South Korea is out of the market until 2008, the demand for export will also not save the beef sector.

There is also the added problem of grain costs. Feeder cattle prices are not likely to drop in the short term. Corn in December 2008 will rise over 30¢ per bushel.