Cash-strapped consumers are on the hunt for deals this summer. We highlighted in a note earlier Friday that Goldman analysts revealed that Walmart offers the best grocery deals among major brick-and-mortar supermarkets. Digging deeper, the discussion has now shifted to the meat aisle.
Consumers are well aware of soaring beef prices over the last several years, primarily due to the collapse of the US cattle herd to its smallest size since the 1950s.
Collapsing herd.
Retail ground beef prices.
The good news for consumers is that with an abundance of pork supplies, prices are much more affordable than beef.
How much cheaper?
Well… Wholesale pork prices are currently $2.13 per pound cheaper than beef. This added savings means consumers have increased purchasing power if they switch from beef to pork during this summer’s grilling season.
According to Bloomberg, the pork industry is finally about to catch some tailwinds after oversupplied conditions severely dented margins in recent years. Now, industry leaders are raising awareness about pork savings.
Pork producers have been under pressure as meat demand hasn’t kept pace with supplies and higher crop prices made it more expensive to feed herds. Still, attendees at the World Pork Expo in Des Moines, Iowa, last week expect the industry’s fortunes to start turning, with more demand giving them the bump needed to further improve margins. -BBG
“I would ask that every American go out and buy as many pork chops as they can and share with their neighbors,” said Bryan Humphreys, CEO of the National Pork Producers Council, a hog producer trade group.
More from Bloomberg about the good fortunes coming to hog farmers:
Hog producers are seeing the beginnings of a turnaround after a pork glut sent profits plunging over the past year. For operators who bulk up pigs from farrowing to slaughter weight, margins in April turned profitable for the first time in seven months, according to Iowa State University data.
“Every time that things get tough, people eat more pizza,” Rabobank senior animal protein analyst Christine McCracken explained, adding that ground pork is a “really tasty alternative” to ground beef.
And there you have it. Beef is becoming a luxury item. Pork is for the poors.
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