The government says pork prices will rise by only 2 percent this year — half the increase forecast two months ago. Retail prices will be held down by a rising supply of meat, says the USDA. Hog prices set a record last year but are expected to fall by one-quarter this year; lower prices would be passed along to consumers. The USDA says there are signs of expansion in hog herds, which would mean more hogs going to slaughter within a few months.
The department also pared its forecast for dairy prices. It now estimates they will rise by 2.5 percent this year, down slightly from the previous forecast of a 3-percent increase. “With higher beginning stocks of wholesale cheese and milk, 2015 prices are expected to fall at the farm and wholesale level, placing downward pressure on retail dairy prices. In addition, lower feed prices favor dairy expansion,” said the USDA. In its monthly Food Price report, the USDA repeated its forecast of an overall 2.5-percent increase in food prices, on par with the 20-year average.