Beef prices to zoom 11 percent this year, pork nears plunge

Beef prices are at record highs, due to the smallest U.S. cattle inventory since 1951, and are now forecast to average 11 percent higher this year than during 2013. In a monthly report on food inflation, the Agriculture Department says “signs of herd expansion are anecdotal at best” and pasture conditions in the West are still parched from a dry summer. “If pasture and water conditions continue to improve in the western half of the United States, herd expansion could be expected in the future. However, it takes roughly 16 to 18 months from birth until cattle are ready for market,” said USDA. It forecasts high beef prices in 2015 but at modestly higher levels than this year.

Pork prices are forecast to rise by 8 percent this year, the result of tight supplies and high demand for meat. “However, there are some signs of industry expansion, and 2015 hog prices are expected to fall 15 percent below 2014 figures,” said USDA. Overall, USDA forecasts food inflation at 3 percent this year and 2.5 percent next year. The 20-year average is 2.6 percent.

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