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Pandemic to Drive Up Grocery Prices

2020-07-09 foodprocessing

Tag: Beef pork poultry

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Increases in the price of proteins will drive grocery prices to a 3% rise this year, the highest increase since 2011, according to figures released by the USDA.

The prices of meat, poultry and fish, which account for one-fifth of grocery spending, have risen due to interruptions in the supply chain caused by the coronavirus situation, according to the USDA’s Monthly Price Outlook. Although those interruptions have mostly been resolved, with much of the lost slaughter capacity having been recovered, the price of beef is still expected to rise by 8%. Pork is expected to rise by 4.5% and poultry by 3%.

“Processors have implemented health protocols for dealing with Covid-19 that might have hindered their ability to process cattle and hogs, although they have recouped much of the lost slaughter capacity,” said the USDA’s report.

Food insecurity is also on the rise as a result of the pandemic. The Covid Impact Survey, as quoted by the Food & Environment Reporting Network, said that in four urban locations – New York City, Baltimore, Chicago, and Birmingham, Ala. – more than 10% of people surveyed in early June said they had received assistance from a food pantry in the preceding week.

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