Meat prices are rising in the U.S. at a faster annual rate than forecast a month ago, as increased demand for pork and beef exports erode inventories and high feed costs discourage livestock producers from expanding herds.
The retail cost of meats will increase 4.5 percent to 5.5 percent this year, including a gain of as much a 7 percent for pork, the most of any major food group, the U.S. Department of Agriculture said today in a report. Beef prices will rise as much as 5.5 percent, or 1 percentage point more than the government forecast on Feb. 24.
“Demand just appears to be the driving force,” said Dennis Smith, a senior account executive at Archer Financial Services Inc. in Chicago. “Domestic and export demand are both improving rather dramatically.”
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