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Rising costs: Meat prices remain high as holidays approach

Sue Johnson/Daily Mining Gazette Prime rib for sale at Tadych’s Econofoods in Houghton. Meat prices remain high this holiday season.

HOUGHTON — Christmas is a time for celebration with friends, family, and food. From decadent sweets like cookies and puddings, to savory meats such as roast beef and prime rib, everyone has their own favorite holiday dish.

But this year, holiday shoppers are encountering higher than normal food prices, especially when it comes to animal products like pork and beef. According to data from the United States Bureau of Labor Statistics, the prices of meat, poultry and fish have all increased significantly over the past year.

In the month of October, meat products experienced their fastest price increase since December, 1990.

Beef prices saw the greatest growth, rising by more than 20% since October, 2020. Beef is followed by pork, seafood, and chicken which experienced price increases of 14%, 11%, and 8.8% respectively.

This price inflation is largely attributable to the continuing COVID-19 pandemic, which has caused supply and distribution problems for the meat industry.

COVID outbreaks and labor shortages have slowed, and at times halted, meat processing at facilities across the country. On top of these challenges, many of the inputs necessary to deliver meat to consumers, such as livestock feed, fertilizer, and transportation, have become more expensive.

The slowdown in processing forced some farmers to cull cattle and other livestock at the beginning of the pandemic, and market uncertainty caused many farmers to scale-back production in 2021.

Meanwhile, America’s demand for meat is as strong as ever. This combination of factors has resulted in high prices.

Another factor that may be contributing to the price spike is a lack of competition in the beef industry. Today, four large conglomerates control 82% of America’s beef production. In 1977 these companies controlled only 25% of production.

In a September press release, the White House asserted that this consolidation of market control has led to higher meat prices, as well as record profits for these four companies.

Tyson foods, a company responsible for approximately 20% of US meat production, has raised its prices by 13% during the 2021 fiscal year, and 24% in the fourth quarter.

Groceries are not the only consumer goods with unusually high prices this year. Price inflation has affected a variety of consumer goods, from gas to clothing. As with beef and pork, demand for these goods remains high while suppliers struggle with the challenges of the pandemic.

In Houghton, Tadych’s Econofoods store manager Jon Dittmann acknowledged the overall high prices during a conversation with the Gazette.

“Pricing went up in general. It’s not just because of the holidays, pricing went up all across the board,” he said on Tuesday morning.

But despite elevated meat prices, Dittmann said that he has not noticed significant changes in the purchasing habits of shoppers.

“It’s just the typical holiday stuff. I haven’t seen anything in particular,” he said. “Each family has got their stuff that they buy and they’re doing their regular shopping. It’s just that quantities are a little bit higher for the holidays.”

From these observations, it seems as if higher prices will not prevent many area residents from enjoying their favorite holiday meals this year.

With the new year on the horizon, many foresee inflation abating as the nation continues to adjust to pandemic life. But as the Omicron variant spreads across the U.S., there is still a great deal of uncertainty ahead in the new year.

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