September 26, 2014
US meat prices to continue rising: USDA
The USDA has announced that prices for several US meats, currently at record highs, are on a continual rise due to drought and disease which have led to the culling of herds.
The inflation is attributed to the Texas/Oklahoma drought on cattle herds and Porcine Epidemic Diarrhea virus (PEDv) on pigs.
In the meantime, farmers' decisions on calving and herd sizes, based on current conditions, will only kick in after about 6 to 18 months, the USDA said.
Overall US food inflation has been projected at 3% for 2014, in line with historical norms, and is forecast to subside to a 2.5% pace in 2015.
Rising by 4.2% during the July-August period are retail beef and veal prices which recorded the largest on-month increase since the end of 2003, and a 15% rise over the past year.
The USDA forecasts beef and veal prices to rise by 8%-9% for 2014, and
pork prices by 7.5%-8.5%. Price increases in 2015 in both categories are expected to subside to about 3.5%.
The increases in beef and pork will push the overall meat, poultry and fish categories, which accounts for about 12.5% of US grocery bills, up by 5%-6%.