News Pork
Bacon price all time high in US and Canada
What a stark contrast: While European pork prices are under heavy pressure, bacon prices in the US and Canada are currently hitting records.
If even CNN and Fox News write about the bacon market, then something is up. And so it is. Bacon prices in the US are at their highest level ever. In the past year, the price has increased by almost 30%. The consumer price for 1 pound of bacon (= 0,45 kilo) recently passed the $7 level for the first time. A price rally is also underway in Canada and records are being broken.
Imbalance in supply and demand
The cause of the price explosion is an imbalance between supply and demand, fueled by corona. The outbreaks in American slaughterhouses have put processing capacity under pressure, and pig farmers were forced to cull their animals. In addition, the American pig stock thinned out considerably in recent months.
As a result, meat stocks have come under pressure. Figures from the United States Department of Agriculture (USDA) show that the stock of pork bellies in cold stores has nearly halved to 8.500 tons in the past year. This is the lowest level in years. Moreover, the seasonal decline will continue until the end of October.
Meanwhile, corona is reasonably under control and the 'old normal' is taking shape again in North America. More is being consumed outside the home again, not least in the famous fast food chains. And an American burger should not be missing a slice of bacon. Where demand is high, stocks fail and prices skyrocket.
Inflation
President Joe Biden is also involved in the high meat prices, which he believes is a result of the market power of the large American slaughterhouses. They bounce the ball back and say that a shortage of personnel, which the government is to blame, is leading to the price rise. High bacon prices are expected to continue in the coming months, leading to inflation. High energy prices also contribute to this. In August, the consumer price index rose by no less than 5,3%.
Wouter Job
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