Animal feed prices have skyrocketed from where they sat in 2020 as global grain balance sheets tightened amid smaller global harvests in 2021 and now by the Russian invasion of Ukraine. The invasion shocked grain markets and sent grain and oilseed crop prices up 20%-30% in a matter of days.
Although feed is the largest variable cost to livestock production, it is not the only cost: Labor and energy also represent major expenses and both of those have been rising steadily as well. The sharply higher costs for feed, and energy in particular, have yet to fully impact wholesale and retail meat prices.
Despite an increase in prices occurred last year, beef demand was steady and chicken continues to enjoy strong consumer demand as well. However, for 2022, a flight to safety from higher meat prices may be to feature value items like ground beef, hot
dogs, and sausage items.
Details: euromeatnews.com