January 6, 2005

US Beef, Pork Prices Remain At Historical Levels

The latest retail prices released from the Economic Research Service of the US Department of Agriculture revealed that the retail prices of both pork and beef in November were lower than the previous month. But the figures remain at very high historical levels.

Pork

Pork retail values fell 3% in November but at $2.811 / retail pound, they are still 3.3% higher than a year ago and as much as 8% above the five-year average. While pork and lean hog prices have appreciated sharply compared with a year ago, that has yet to show up at the retail counter. Indeed, the rise in retail prices has been relatively muted compared to what has taken place in the beef complex.

Beef

The increase in beef retail values appears to have moderated but current prices continue to be significantly higher than historical levels. At $4.057/retail pound, November beef retail values are now 6% lower than a year ago. Retail beef prices have declined on a year over year basis mostly because of the sharp appreciation in prices during the last quarter of 2003.

Retail beef prices continue to be significantly higher than the five-year average. Compared with the five-year average level, retail beef prices are about 18% higher.