Fresh meat prices were up 8.1% at the end of April, as the coronavirus pandemic causes serious issues in the American supply chain. Pork and beef prices could increase by an unprecedented 20% in the coming months, according to a new report from CoBank. With pork and beef production plunging by 35%, CoBank economist Will Sawyer says shortages and price inflation are “nearly assured.”
Fresh meat prices escalated 8.1% in stores, compared to the same period last year, according to Nielsen data for the week ending April 25. Experts expect prices to skyrocket in the coming weeks, as meat processing plants across the US are forced to close due to the coronavirus pandemic. Pork and beef prices could increase by as much as 20% compared to 2019, according to a new report from CoBank, a cooperative bank that is part of the Farm Credit System. A 20% increase would be an unprecedented price hike, according to Will Sawyer, CoBank’s lead animal protein economist. Pork prices have only experienced inflation of more than 10% twice in the last 20 years; neither time did inflation grow to 20%. Pork and beef production has plunged by roughly 35% compared to this time last year, according to the CoBank report. As a result, Sawyer says, grocery stores running out of products and price inflation are “nearly assured.” Some 115 meat and poultry processing plants have reported COVID-19 cases, according to a report from the Centers for Disease Control and Prevention released last week. There have been 4,913 confirmed COVID-19 cases and 20 deaths among workers, as experts say meat processing plants are becoming the next hotspot for the pandemic. A number of massive meat processing plants have been forced to shut down due to COVID-19 cases or operate at a limited capacity, as concerned employees refuse to come to work and new social distancing policies roll out. In an effort to combat shortages, President Trump recently signed an executive order demanding that meat processing plants stay open. With slaughterhouses shutting down, farmers have been forced to kill pigs and destroy inventory instead of selling at a loss. Hog farmers are expected to euthanize seven million pigs in the second quarter alone.