September 22, 2008

 

Rising US feed prices to push up meat prices for the next two years

 

 

US meat producers have just begun their cutback on meat production as feed grain prices rise, and the effects would be keenly felt in the next two years, an industry analyst said.

 

The recent retreat in feed grain prices would be short-lived, David Maloni, the chief commodity research analyst for the American Restaurant Association said at a conference call.

 

Boneless skinless chicken breast prices could average 15 percent to 30 percent above current levels over the next two years.

 

Both beef and pork prices could rise 5 percent to 10 percent above current prices during the same period, he said.

 

Estimating that cattle feeding costs rose 48 percent in the 2007/2008 (September-August) crop year, he predicted an additional 16 percent increase during 2008/2009.

 

For hogs, he estimated feeding costs rose 51 percent in 2007/2008 and predicted an additional 13 percent increase in 2008/2009.

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