Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more.
USDA data shows that the average price paid to livestock producers at the farm level dropped by nearly 20% in April.
At the same time, consumer prices for meat, poultry, fish, and eggs began increasing.
By June, consumer prices were 10% higher than the level before the pandemic. Once the packing plant disruptions eased, the price trends reversed, as seen in the following chart.
The data shows that consumer prices for meat and other animal products declined by more than 5% between June and November, while farm-level prices increased by 20% between April and November.
Price trends have not returned to pre-pandemic levels yet, with consumers still paying slightly higher prices, but the situation has improved.
Livestock producers have weathered the worst of the pandemic impact, but looking forward, rising feed costs will add a different challenge.