Building on Bank of America's latest note, which cited Oklahoma State University agricultural economist Derrell Peel's warning that the US cattle cycle is unlikely to improve anytime soon, beef prices are poised to remain elevated through at least next year. But two competitively priced proteins that consumers can switch to today remain largely overlooked.
That overlooked protein is ground pork, with an average of $4.81 a pound in mid-June, compared with $7.95 for ground beef, while pork chops cost roughly one-third as much as beef steak, according to Bloomberg, citing NielsenIQ data.
Still, beef consumption is forecast at a 15-year high, underscoring how stubborn consumers are and how unwilling they are to trade down for their meats.
Processors including Smithfield Foods are responding with precut, marinated and ground-pork products designed to improve convenience and compete with beef and chicken.
Industry insiders see ground pork as the category's biggest opportunity, though ground beef's $17 billion in annual sales suggests any shift will be gradual.
"People don't want to risk something not tasting great when it comes down to it," said Reba Hatcher, chief commercial officer at meat subscription company ButcherBox, who the outlet cited. "Even if it's cheaper when you go to the checkout, it's not cheaper if you end up throwing it away or people end up hating it at the dinner table."
For readers wondering just how long beef prices will remain elevated, the BofA note provides a timeline for when the cattle cycle could turn upward. Spoiler alert: not anytime soon. Read report.
With beef prices unlikely to meaningfully ease anytime soon, the Beck Ranch Carnivore Trio in ZeroHedge Store lets readers stock the freezer with more affordable and premium chicken and pork while still keeping premium ground beef in the mix.
