Your next hamburger is probably going to be more expensive than you expect. Why? The price of ground beef has relentlessly been rising this year.
A WSJ report attributes this largely to the increasing craving for meat - be it a sirloin steak for those who can afford it or roast beef for those who cannot afford a steak.
Now is a good time to be a cattle farmer. The report quotes Iowan farmer Sam Carney -
"We’re making money and paying off bills," says Sam Carney, who raises thousands of pigs and hundreds of cows, in addition to growing crops, on his farm in Adair, Iowa. "It wasn’t that way a few years ago."
Last year, the USDA reported that almost $3.8bn worth of beef had been exported and this year is set to top 2010.
Wal-Mart is also having a huge hand in deciding the price of beef, says WSJ. Until Wal-Mart confirmed that it was rolling out choice cuts to its 3800 stores, analysts were wondering about the confounding increases in the prices of beef.
What does this mean for the consumer? The LA Times detects a trend in offering more sausage and pork dishes - not only because of the demand but also because of cheaper prices.
Drovers’ Cattle Network, a trade magazine focused on beef has reported that cattle farmers are reducing cattle slaughters due to ever-increasing prices. This might raise the prices even higher as the supply will become limited.
Wendy’s attributed its recent quarterly losses to the spikes in beef prices. These losses will need to be adjusted in the price of the burger, so don’t be surprised if you end up paying more.
However, Voice of America has painted a gloomy picture for cattlemen and consumers alike. The drought could spike prices even higher, according to its report.
So, it’s not over yet. “What’s your beef” is going to take on a more serious meaning in the days to come.
- allaboutthedough posted this