Report: Chicken, Pork and Beef Prices Likely to Skyrocket Due to Massive Increases in Feed Costs
Hopefully this does not come as a surprise to readers here; however, according to analysis by industry insiders, Chicken prices are likely to increase by 70% this year once the full price increases in grain, used as feed, start to take hold. Overall, we will likely see a leveling off in beef prices, but pork (due to soybeans) and chicken (due to grain) will increase significantly.
The issue is one we noted in December of last year when identifying the downstream consequences of fertilizer and component products used for the production of corn, wheat and soybeans crops. “You might say those crops do not seem like they are that important. However, keep in mind that Corn, Wheat and Soybeans represent the baseline for not only grain production in the U.S, but they are also the primary feed products for proteins: chicken, pork and beef.” {Go Deep}
(Fox Business) – Evercore ISI issued a protein inflation note this week projecting that most protein prices are forecasted to increase “substantially” due to the higher feed costs, with chicken breast reaching as high as 70% year-over-year in the first half of 2022. The analysis said pork and ground beef could climb as high as 20% year-over-year during the same period. (more)
That was last year. Those prices have doubled since then. GO DEEP
These anticipated price increases now being projected are what CTH refers to as the tail end of the second inflation wave. We entered the second wave last month driven by massive fuel and gasoline increases. Those costs will join with the fertilizer costs and create a snowball effect in the food sector.
Statistically the 2022 inflationary measure will look lower, because when the biggest part of the second wave hits, it will be cycling around in comparison time to the beginning of the first wave in 2021. The percentage of change will be lower; however, the actual dollar increase in this second wave on food products will be higher than the first.
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