November 6, 2003

 

 

US Beef Prices Rose More than 45% Over Last Year To Record Highs
 

Beef prices are stampeding New York City and the nation, rising more than 45% over last year to record highs.

 

From lowly tripe and oxtail to exquisitely marbled and aged prime sirloin, now at $42.98 a pound at one Madison Ave. butcher, the price of every beef product has soared, almost doubling in some cases.

 

Consumers are being hit hardest by the surge, triggered this summer by the ban on Canadian beef imports following a minor outbreak of mad cow disease in that country.

 

Some restaurants and other food purveyors also are getting burned in the spiral, choosing to absorb the price hike rather than risk losing business.

 

The price increase boils down to this: supply is not matching demand. More than 500 million pounds are off the American market with the Canadian ban, and the domestic cattle herd is down 7.4 million head since 1996. An increasing appetite for beef products and skinnier steer also are contributing to the meat squeeze.

 

Many cattlemen are bringing their animals to slaughter sooner than usual to take advantage of the current high prices, according to federal agriculture economists.

 

"On October 25, the average cow coming to market was 28 pounds lighter than a year ago," said Shayle Shagam, a Department of Agriculture livestock analyst.

 

Shagam also cited the growing popularity of the protein-heavy Atkins diet as a demand factor.

 

On the floor of the Chicago Mercantile Exchange, where cattle commodity prices are set, traders have been stunned.

 

"Putting it all together, it's been the 'perfect storm' for beef prices," said Charles Leavitt, senior livestock analyst for Alaron Trading Corp.

 

"I've been here 40 years, and far and away this is the all-time high," he said.

 

In supermarkets throughout New York, customers are sizzling.

 

At a Pathmark in Fort Greene, Brooklyn, Tracy Mothershed bought some beef rib steaks at $9.29 a pound and commented: "I do buy less meat. We're eating more chicken and we end up buying more fish."

 

The same situation goes for in Queens.

 

The high end of the meat market is now experiencing the biggest shortage, where the fattest, juiciest and most expensive aged prime meat is sold, is experiencing the biggest shortage.

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