Meat Prices Get Tough

Meat lovers, get ready to pay up at the supermarket. The worst drought in half a century has taken a toll on this year's corn and wheat crops, raising the cost of feeding cattle and hogs.

Fresh beef's retail value jumped to an average of $4.72 a pound in July, a second straight price record, the Agriculture Department said last week. The Labor Department attributed more than half the gain in the wholesale cost of food seen in July's producer-price index to 3.8% rise in the prices of beef and veal.

The chewing may only get tougher.  Karen Short, food retail analyst at BMO Capital Markets, expects a low teen percentage rise in the price of beef, chicken and pork at supermarkets in 2013.  "It is one big daily chain when it comes to corn prices and temperatures," she said.

Source:  Barrons

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