And yes, it accounts for inflation.
This craving for pork chops is costing you about 7% more than it was 12 months ago. Inflation-adjusted Consumer Price Index data show, the average price of that slab of bacon has risen nearly 28% during the past 12 months, with a Sunday morning spread.
According to the expectations of some analysts, the higher prices are not expected to ease soon.
how did we get here
When the COVID-19 virus began its spread in the US, the domestic pork supply chain was the fastest.
Panic-stricken consumers bought deep freezers and cleaned meat counters. The food service channel was effectively shut down overnight, severing a major branch of the supply chain.
He said pork production is expected to decline 2% from 2020 levels.
In terms of demand, it’s a different story.
“Demand in the US has been exceptional, with the retail sector growing in volumes more than ever before,” Speck said in an email to Granthshala Business. “The combined effect of tight supply and strong demand for protein overall has contributed to this inflation.”
With meat shortages in cold storage at the end of last year, the industry relied more on fresh animals, which helped push up raw material prices, he said, adding that it was likely that those costs were peaking and futures markets would be affected. Indications show prices will return to normal by June 2022.
“But don’t expect a rapid price discount over the next few months,” Speck said, “because retailers are generally slow to roll back bacon prices.”
Feed, material and labor costs have also increased significantly, said Trey Malone, assistant professor and agricultural economist at Michigan State University.
The top four hog-processing firms now control 66% of the market – double the market share since 1976, according to the NEC.
“This consolidation gives these middlemen the power to squeeze out both consumers and farmers and ranchers,” he wrote.
They wrote that pork, beef and poultry have seen the biggest price jump among other food products since December 2020, at 12.1%, 14% and 6.6%, respectively.
In response, the Biden administration and the US Department of Agriculture’s announced plans of action include enforcing antitrust laws; pricing checks; Offering $1.4 billion in pandemic aid to small producers, farmers and workers; and a $500 million investment to support new competitive entrants.
Amid high costs and continued volatility, some farmers, consumers and business owners relying on pork are finding it difficult to just sit back and eat it.
“I’ve been in the restaurant business since the early ’80s, and I’ve never seen anything like it,” said chef Miguel Escobedo, who runs the El Pastor Papi food truck in San Francisco.
Escobedo’s Roaring Restaurant specializes in al pastor – 24-to-48-hour marinated shredded pork shoulder that is hand-pile into a cone-like shape and the roast is placed on a vertical spit. Developed in Mexico City, this dish was inspired by Lebanese shawarma.
He said the price of the 30 pounds of pork needed for the dish has doubled in recent months.
“Sometimes you saw some volatility in the market. You planned the budget for the year and knew some [prices] There will be more,” he said. “But there is nothing like it.”
Escobedo has opted to be flexible – offering a variety of dishes such as al pastor-marinated shrimp if prices or supplies are out of reach.
“At this point, you just have to adjust,” he said.
Dria White, 51, of Emeryville, California, has cut her grocery shopping from twice a month to once a month to save enough money. She’s buying less bacon than ever before and is often asking for $5 Friday protein.
“It’s great luck with whatever you can find [the grocery store] that you can buy at a reasonable price and walk out the door,” White told Granthshala Business after a recent trip to the grocery store in the Greater Bay Area. “Let’s be honest, if I want to eat, then I will Let’s just keep it real. If I’m going to eat out, I’m definitely going to pay for the food I want.”
Credit : www.cnn.com