Beef lovers are paying more for their favorites at the grocery store.
Consumers are less likely to splurge on steaks and chops. Prices for meat are way up. Processors like Tyson Foods Inc. and JBS USA are making the least amount of money per head of cattle slaughtered in more than two years. Economist David Anderson, at Texas A&M University, says shoppers have been forced to adapt.
“They’re shifting from steaks to more hamburgers. They also shift between expensive grades to ‘Select’, which is leaner,” Anderson said.
He has a reason to feel optimistic in the short-term. Wholesale prices have slightly declined.
“Ribeyes, New York strips, even chucks. They’re all lower at wholesale then they were a year ago,” Anderson explained. “Even some of the things like your tenderloin have been failing over the last few weeks.”
However, he says that hasn't translated to lower prices at the grocery store yet. Anderson is hoping Texas ranchers will see some rain soon. A statewide drought is deepening, which could potentially put cattle at risk.
That leads into our poll question.