The Higher Cost of Meat

Are you thinking of entertaining and using your grill one last time before the weather changes? You might prepare yourself to pay more for your meat than expected.

According to a New York Times article, the average American consumes about 8 oz. of meat each day. And, according to Forbes magazine, if you’re one of those meat eaters, you can expect to see an increase in your grocery bill this year.

What is the cause of the cost increase? It’s more than just inflation. This year’s drought has been devastating to farms and the harvests have been meager. So the costs will be passed on to the consumer. The USDA estimates that the cost of beef, in particular, will increase 4% to 5%.

“So what connects the price of milk and steak or indeed a whole chicken or a pork chop so closely to grain? The feed that nourishes the livestock, of course. With corn and soybean meal – the protein part of chicken feed, at sky-high prices, producers are burdened with prohibitively high input costs. Fresh protein then as well as dairy will see the most dramatic price spikes.” 1

Follow this link to Forbes.com to view a photo gallery on how the drought has impacted different foods.

1 Arumugam, N. (2012, September 27) Rising Food Costs: How the Drought Will Increase Your Grocery Bill. Forbes. Retrieved October 8, 2012, from http://www.forbes.com/sites/nadiaarumugam/2012/09/27/rising-food-costs-how-the-drought-will-increase-your-grocery-bill/