May 4, 2022

 

National Beef says US beef prices set to increase

 

 

Major US meatpacker National Beef, owned by Brazilian giant Marfrig Global Foods, said US beef prices are expected to increase in the months ahead, Bloomberg reported.

 

Tim Klein, chief executive of Marfig's North American operations, said the costs to purchase cattle are rising but the firm can pass those costs over to consumers through more expensive steaks and burgers.

 

Klein said National Beef expects relatively stable margins in the next two quarters.

 

As customers battle with the fastest inflation in 40 years, meat prices have become a focal point. According to federal data, the average price of ground beef in American grocery shops has increased by 18% from a year earlier.

 

Klein said American consumers may adjust to inflation by purchasing less expensive cuts.

 

Marfrig surpassed analysts' expectations for profits before items and revenue in the first quarter. Miguel Gularte, who oversees operations in South America, said US operations drove gains, while South America's unit began to recover amid increasing Chinese demand and improving cattle availability in Brazil.

 

-      Bloomberg

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