Feed costs, meat prices higher than year ago
Higher meat prices are prompting changes on some menus. According to a report in Restaurant Business, processing plants have focused more on cuts that are more popular at retailers, than restaurants.
A New Jersey chef says that his cost for meat is up 12-15 percent over pre-pandemic levels.
Meat prices are expected to remain elevated throughout the year. So, some restaurants are changing the menu weekly to feature different and less-expensive cuts.
Feed costs are also running 25-30 percent higher than they were a year ago.
Last week’s USDA report added more upside to grain and oilseed markets. The quarterly stocks estimate for corn and soybeans, and planting intentions report came in lower than expected.
That indicates that domestic and export demand could tighten supplies, more than anticipated. Less on hand will increase feed grain prices. In response, Oklahoma livestock economist Derrell Peel says that feedlots will likely favor higher placement weights, and add cheaper ingredients to adjust rations, like wheat.
The cereal grain’s prices have increased in the southern plains but it is still relatively less than corn.