{"id":1663598,"date":"2022-09-29T06:53:24","date_gmt":"2022-09-29T10:53:24","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1663598"},"modified":"2022-09-29T06:53:51","modified_gmt":"2022-09-29T10:53:51","slug":"despite-robust-output-in-2022-beef-prices-expected-to-rise-in-coming-years","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/despite-robust-output-in-2022-beef-prices-expected-to-rise-in-coming-years\/","title":{"rendered":"Despite Robust Output in 2022, Beef Prices Expected to Rise in Coming Years"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdespite-robust-output-in-2022-beef-prices-expected-to-rise-in-coming-years%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1663598&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><span data-contrast=\"auto\">Consumers can expect to pay more for beef at the supermarket, as prices are expected to increase heading into 2023 amid rising feed costs and intensifying drought conditions in key producing areas, which are resulting in tighter supplies.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In August, beef and veal prices climbed 2.5 percent year over year, according to the Bureau of Labor Statistics (<a href=\"https:\/\/www.bls.gov\/news.release\/cpi.t02.htm\">BLS<\/a>). Within this category, uncooked ground beef and uncooked beef roasts surged at an annualized pace of 7.8 percent and 3.3 percent, respectively. Steak prices have tumbled 3 percent from a year ago.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Year to date, live cattle futures have advanced more than 5 percent, to $1.47 per pound, on the Chicago Mercantile Exchange (CME). Prices are expected to post a third-quarter gain of about 10 percent.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Despite growing expectations that beef prices will come down due to slower demand growth from recession fears and consumers shifting their behaviors at the dinner table, some industry experts think there is more room for growth. In fact, businesses and shoppers can anticipate to spend more on beef costs, says Jayson Lusk, a food and agricultural economist and professor at the Department of Agricultural Economics at Purdue University.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Cow and heifer slaughter rates have been robust this year. Because slaughter numbers in the Southern Plains have risen about 30 percent year to date compared to 2021, beef production has been impressive in 2022. Data from the U.S. Department of Agriculture (<a href=\"https:\/\/www.ers.usda.gov\/webdocs\/outlooks\/104508\/ldp-m-338.pdf?v=7761.5\">USDA<\/a>) show that more beef cows were slaughtered in July than during any other month since record-keeping started in 1986. <\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<figure id=\"attachment_3353969\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2020\/05\/17\/Australia-China-Trade-tension-1200x800.jpg\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3353969\" src=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2020\/05\/17\/Australia-China-Trade-tension-600x400.jpg\" alt=\"AUSTRALIA-CHINA-TRADE-AGRICULTURE-HEALTH-VIRUS\" width=\"600\" height=\"400\" \/><\/noscript><\/figcaption><\/a> Butcher George Vourvahakis holds up a tray of Australian rump steaks at his store in the Melbourne suburb of Yarraville, Australia, on May 12, 2020. (William West \/AFP via Getty Images)<\/figure>\n<p><span data-contrast=\"auto\">In some cases, farmers without enough feed or water have shipped their cattle to slaughter prematurely. The liquidation of supply has offered consumers discounts at the supermarket butcher. <\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Industry observers argue that this is unsustainable because there are fewer cows and fewer replacement heifers to produce cows. The long-term implication is that the market will experience tighter supplies.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cFewer calves in 2022 and 2023 means there will be fewer cattle and ultimately less beef in 2024 and 2025,\u201d Lusk <a href=\"http:\/\/jaysonlusk.com\/blog\/2022\/9\/14\/food-prices-a-prediction-for-2023-and-2024\">wrote<\/a>. \u201c[T]he decisions being made <em>today<\/em> to sell cows and heifers will have impacts on retail beef prices <em>two to four<\/em> years from now.\u201d<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Put simply, droughts and elevated\u00a0feed prices in the current economic landscape will diminish beef supply in the U.S. marketplace in the coming years.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">During a <a href=\"https:\/\/seekingalpha.com\/article\/4527287-texas-roadhouse-inc-txrh-ceo-jerry-morgan-on-q2-2022-results-earnings-call-transcript\">second-quarter earnings call<\/a>, the restaurant chain Texas Roadhouse acknowledged some relief from escalating beef prices,\u00a0but it warned that pressures are expected in the fourth quarter.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cWe still believe that commodity inflation is cyclical and commodity costs are cyclical. So, while we are feeling some significant inflation right now, that cycle will turn at some point,\u201d said CFO Tonya Robinson. \u201cThat philosophy hasn\u2019t changed. That just means we may take it on the chin a little more during that short-term cycle and count on guests being loyal and coming back to us.\u201d<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<h2><span data-contrast=\"auto\">Can Chicken and Turkey Save <a href=\"https:\/\/www.theepochtimes.com\/t-beef\">Beef<\/a>?<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">The latest trend in the food sector is that budget-conscious consumers are trading down from beef to <a href=\"https:\/\/www.theepochtimes.com\/t-chicken\">chicken<\/a>. Poultry is generally more affordable than beef, although the price gap may be temporary. Chicken and egg prices have spiked 16.6 percent and 39.8 percent, respectively, year over year.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The national average price for a fresh whole chicken is $1.879 per pound, while a dozen large-grade A eggs costs $3.116, according to official\u00a0<a href=\"https:\/\/www.bls.gov\/regions\/mid-atlantic\/data\/averageretailfoodandenergyprices_usandmidwest_table.htm\">data<\/a><\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0from the BLS.<\/span><\/p>\n<p><span data-contrast=\"auto\">The industry has been hit by increasing consumption\u00a0and an Avian flu outbreak earlier this year.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Supplies have had challenges keeping up with demand. Egg output was down 2 percent year over year in August (<a href=\"https:\/\/downloads.usda.library.cornell.edu\/usda-esmis\/files\/fb494842n\/5425mk131\/qn59rc52m\/ckeg0922.pdf\">pdf<\/a>), while chicken production <a href=\"https:\/\/www.ers.usda.gov\/webdocs\/outlooks\/104768\/ldp-m-339.pdf?v=1706.3\">slipped<\/a> 1.8 percent year over year in July. The positive development, however, is that cases of highly pathogenic avian influenza (HPAI) have subsided, according to a new <a href=\"https:\/\/www.globenewswire.com\/Tracker?data=84Zzg-50_dY1-yqnTfHfKtScWgzZUdl8WtnsilE75HIkTJDhClTJ5DN-DoiVoaauGshDLaYtaVsFbhpmF4nEZLJU1a6t11J4SAjIuDDBM4FODVFMjpgBiqHd6wyknNY6xkw8cxRZTgm5kCSalu5DQGh-eB4oCLpAneK7JpyR5Fuq-nxvzSxWSes4jVkIWrPk3dfHOcm8nBX7xMQkzhQfR1U7Be3_9VTheH3rhkMzIVWBx9LdfP_Nsa2DFaqPFxiyU8fGMsY_oieuxr-O-YMzzr9xeUGQos8k6G3U45NRRGmNzs-bLkbDESq6ogagEWhYfgcvq4TAdVVzU4ikTo1l4g==\">report<\/a> from CoBank\u2019s Knowledge Exchange. But the chief concern is that \u201cthe risk of another outbreak this fall remains elevated and the stakes for poultry producers couldn\u2019t be higher.\u201d<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Some restaurants are incorporating more chicken into their menus. It has been estimated that chicken now accounts for 60 percent of Chipotle\u2019s entrees and represents fewer than 20 percent of its food costs. Others, including <a href=\"https:\/\/ir.wingstop.com\/news-and-events\/news\/press-release-details\/2021\/Its-Time-to-Have-it-All-Wingstop-Adds-Thighs-to-its-Menu\/default.aspx\">Wingstop<\/a>, are shifting to chicken thighs or darker poultry meat because these items are cheaper than breasts and tenders.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With Thanksgiving only two months away, households are already planning their turkey dinners. However, like chicken, turkey is reeling from higher prices, the bird flu, lackluster production, and inflationary pressures, warns the <a href=\"https:\/\/www.fb.org\/market-intel\/just-ahead-of-thanksgiving-record-turkey-and-egg-prices-indicate-strain-on\">American Farm Bureau<\/a>.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cTurkey prices are currently at record levels, resulting from the combination of tighter supplies caused by HPAI, higher demand, inflation, and increased demands on U.S. food systems,\u201d the group wrote. \u201cWhile there should be enough turkeys to go around for Thanksgiving, pressure will keep prices high with supplies forecasted lower and demand forecasted higher for 2023.\u201d<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The national average price for a frozen, Grade A, whole young hen, weighing 8\u201316 pounds, was $1.72 per pound this month, up 20 percent from last year.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-andrew-moran\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/WEB_AndrewMoran.jpeg\" alt=\"Andrew Moran\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Andrew Moran covers business, economics, and finance. He has been a writer and reporter for more than a decade in Toronto, with bylines on Liberty Nation, Digital Journal, and Career Addict. He is also the author of &#8220;The War on Cash.&#8221;<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Consumers can expect to pay more for beef at the supermarket, as prices are expected to increase heading into 2023 amid rising feed costs and intensifying drought conditions in<\/p>\n","protected":false},"author":1,"featured_media":1663602,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1663598","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1663598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1663598"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1663598\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1663602"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1663598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1663598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1663598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}