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Rising Pork Bellies Prices Hit All-Time High - U.s.

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http://www.guardian.co.uk/business/2010/aug/02/rising-pork-bellies-prices-hit-all-time-high

A crispy rasher of bacon is becoming an increasingly costly indulgence in the US, where a surging appetite for pigmeat and cutbacks in farmers' swine herds have pushed the price of pork cuts to an all-time high.

On the Chicago Mercantile Exchange, the cost of pork bellies, which are used to produce bacon, has risen by more than 65% in the last 12 months and the wholesale price of pig product hit $1.35 per pound last week – its highest on record.

Analysts say farmers reducing pig herds during the recession, together with swine flu and high feed prices, took their toll. Meanwhile, demand is on the up as consumers trade down to bacon from more expensive meats, while seasonal use reaches a summer peak.

"The supply of slaughter hogs in the US is much lower than a year ago," says Chip Whalen, a risk manager at Commodity & Ingredient Hedging, a consultancy in Chicago. "There's a lot of additional usage of bacon – the BLT is very popular at this time of year and a lot of restaurants feature bacon on their menus in salads and sandwiches."

The surging commodity price has found its way into US supermarkets. The Bureau of Labour Statistics reported last month that retail prices for sliced bacon reached a 30-year high of $4.04 per pound in US cities in June, an increase of 18 cents on the previous month.

British bacon fans are feeling less of a squeeze. Most British pork is either domestically produced or imported from Denmark. BPEX, which tracks the pork market in Britain, said prices had been rising this summer but were still below last year's peak. In the four weeks to 16 May, British consumers spent £93m on bacon, up 9% year-on-year.

"We're really a beef and poultry consumer market. But during the recession, as the economic downturn has gone on, people have substituted to pigmeat and pork products," said James Park, a senior analyst at BPEX. "A lot has been done in the media on how versatile pork is, how it can be used as an alternative for pricier cuts."

Our banker friends betting on food now to help get their bonus?

Higher prices will help to create growth.....

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Guest DissipatedYouthIsValuable

More good news! Pork belly owners are now much better off!

It's marvellous. I'm renting out three in Florida.

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  • 138 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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