USDA Raises Beef, Pork Prices Forecasts on Drought, Disease

USDA Raises Beef, Pork Prices Forecasts on Drought, Disease

The U.S. Department of Agriculture (USDA) has increased its price forecasts for beef, pork, and veal stating that prices will rise between 6.5% and 7.5% for 2014 – up from its previous estimate a month ago of between 5.5% and 6.5%.  The department also indicates that the overall “meats, poultry and fish” category of foods will see a price increase of between 4% and 5% for the year, and overall food inflation including restaurant purchases will be between 2.5% and 3.5% for 2014.  These increases are expected to decrease slightly in 2015 to between 2% and 3%.  Although food prices in the first half of 2014 increased more than in the whole of 2013, the department states that low commodity prices for corn and soybeans and climbing herd numbers should mitigate that increase.  The prices of both pork and beef have climbed by approximately 11% this year through July as the country deals with the effects of porcine epidemic diarrhea virus (PEDv) killing millions of piglets and the lowest beef cattle herd numbers in 60 years.

 

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