Retail pork market moves in producers’ favour

Increasing grocery sales may be the silver lining amidst surplus of pork supply for producers

By Jennifer Jackson

Retail meat prices have dropped significantly in 2016. Pork prices in grocery stores have declined by 2.7 per cent since last year, according to Statistics Canada’s  latest consumer price index, and highlighted by Leigh Anderson, senior agricultural economist for Farm Credit Canada (FCC).

Low consumer prices should equate to higher number of sales, says Anderson. Since 2010, Canadian pork consumption has increased by 2.6 per cent, according to his FCC article.

The strength in consumer pork demand may help combat to the low hog prices producers have experienced with the increased North American meat supply, according to Anderson.

 “Large meat supplies in the North American marketplace are here to stay,” writes Anderson.

“There’s a lot of meat to move either through the domestic supply chain or in international markets.” Moderate consumer prices – and therefore increasing sales – will help boost movement of these large inventories, according to Anderson.

While chicken consumption will always be strong, “lower red meat prices may be just what the doctor ordered for farm cattle and hog prices to recover,” says Anderson.

Beef prices declined by 4.4 per cent since last year, according to the consumer price index. Chicken prices did not experience any significant changes.