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Bigmista 05-03-2006 06:53 PM

A Meaty Discussion
 
From the Wells Fargo Advantage Funds Newsletter:

If gasoline prices have you worried, consider this solution. Drive less and grill more. Haven't you noticed? Meat prices are falling. Instead of burning gasoline at $3.00 a gallon on the way to a restaurant on Saturday night, pick up a good London broil at $3.00 a pound and burn a little charcoal. According to the Livestock Information Center, beef and pork prices are at three-year lows and chicken prices are at four-year lows.

Part of the problem is the scary news reporting about those meat-born diseases avian flu and mad cow disease. Both illnesses have cut significantly into U.S. exports of chicken and beef. This week both Tyson Foods and Pilgrim's Pride reported quarterly losses and blamed fears of disease for part of their losses. In my local market, chicken legs (great on the grill!) were selling recently for 25 cents a pound. Hey, that's $2 a gallon for chicken, or $1 a gallon less than gasoline. (Can I put a chicken in my tank?)

But it's not just looney livestock and chickens that flu the coop that are causing prices to fall. That wouldn't explain why pork prices are also coming down. There's another force at work: We're not eating as much meat as we did a few years ago when high protein diets were the rage. But meat production continues to expand. The Agriculture Department estimates that U.S. beef production will be up 5% this year, pork production will be up 3%, and chicken production will be up 2%. Says one Wall Street analyst: "There's too much meat. We're just producing too much of it." So prices will fall until demand picks up. It's the law of supply and demand, and it works on gasoline, too. Gasoline prices will fall when we stop using so much. And isn't it curious how we take insult when prices rise and how we take it for granted when they fall.

Possible headlines for this story:
"How to Get More Mileage Out of Your Food Budget"
"From Car Grill to Char Grill"
"Don't Burn Gas (and Try Not to Burn the Meat)"
"From 'Cut Out the Meat' to 'Out to Get a Cut of Meat'"
"The Law of Supply and Da Meat"

bbqjoe 05-04-2006 01:02 AM

Strange.Explain to me then why my pork rib prices have increased 40 cents per pound over the last few months.

Great analogies Mista!!!

CarbonToe 05-04-2006 05:27 AM

Quote:

Originally Posted by bbqjoe
Strange.Explain to me then why my pork rib prices have increased 40 cents per pound over the last few months

Summer?

kickassbbq 05-04-2006 07:05 AM

I agree with The Big Mista Meister!!!!!!
Drive less, smoke more. But honestly Big, I have not seen a DECREASE on the price of ANYTHING that I buy.
You ain't seen nothing yet. Those gas prices are cheap right now. I'll bet ya within 18 months they will be at 5.00 and you WILL pay it and there ain't nothing we can do.
Stay Home!!!!!!!!!!!
Smoke On!!!!!!
ed

ggeilman 05-04-2006 11:11 AM

I haven't seen anything cheap. Meat prices are more expensive everytime I go to the store.

Bigmista 05-04-2006 11:22 AM

I just passed the article on.

Betterman 05-04-2006 11:41 AM

Wholesale meat prices are down, but when you take into account the extra cost for the fuel to get it to market etc. the retail price might not change much or even move up. All depends where it's comming from.

Sledneck 05-04-2006 03:06 PM

As long as the price of my vodka doesnt go up im fine

BBQ_MAFIA 05-04-2006 04:11 PM

I just got Chicken quarters at Rest. Depot for 25 cents a pound.
I did have to buy the whole case so the freezer is getting packed up now.

tigger 05-04-2006 06:13 PM

Beef prices are not at a 3 year low around this place! Now that gets me thinkin.....I wonder if prices would drop further if more cattle crossed our borders

Kevin 05-04-2006 07:32 PM

Quote:

Originally Posted by Sledneck
As long as the price of my vodka doesnt go up im fine

I'm with you on that one. Canadian McMasters here.


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