Bacon is booming in America at the tune of $4 Billion year in sales. Even the butchers I go to now are offering better prices at the counter for it than the package sitting on the freezer shelf.
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Via CNN –
While satisfaction with the restaurant industry has waned, the survey found Americans Continue reading →
In January I blogged about hog numbers expanding. Now more expansion has happened within the state and nationally. That is good news on the supply side which hopefully equates to some lower prices.
Here is more from HoosierAgToday.com –
Indiana’s total hog and pig inventory on March 1 was estimated at 3.65 million head, up 300,000 head from a year ago, according to Greg Matli, State Statistician, of the USDA, NASS, Indiana Field Office.
United States inventory of all hogs and pigs on March 1, 2015 was 65.9 million head. This was up 7 percent from March 1, 2014, but down slightly from December 1, 2014. Breeding inventory, at 5.98 million head, was up 2 percent from last year, and up 1 percent from the previous quarter.
The best indicator of inflation is the prices you pay for everyday goods. I have a saying, the best economist is the consumer. Most consumers will self monitor the prices paid on goods they frequent. The picture below is a 2012 menu from Five Guys Burgers. The address is listed on top of the store location and the date of print is lower right hand corner.
I decided to go to the store website of the same address online to compare prices. You can view it yourself here at this link. Here are the price comparisons of 2014 and 2012.
Hamburger $5.79/$5.19 14.4% increase
Cheeseburger $6.49/$5.89 10% increase
Bacon Burger $6.69/$5.99 11.6% increase
Bacon Cheeseburger $7.29/$6.49 12.3% increase
Not all price have gone up. Drinks and fries have stayed the same. Hot dogs and Sandwiches have also increased.
Purdue Agricultural economnist Chris Hurt is projecting pork prices to head this summer into the mid $90 per head profit range for producers. Currently they sit around $70 per head. Excluding inflation from money printing, he states that smaller spring farrows from PEDv virus and growing foreign purchase of US pork is driving the pricing. Hurt has suggested farmers has seen this price indicator and plan to expand their pork farrows between 4-6%. His analysis also leads to lower pricing after September of this year after the $90/head profit is reached. Spring of 2015 bigger herd numbers should be seen.