Agri View: Meat Prices Increasing

DanAgri View, Cattle

meat pricesEverett Griner talks about the reasons for meat prices increasing in the grocery store in today’s Agri View.

Now the cost you pay for a T-Bone steak, or a chuck roast, does not begin with the growers profit. It is there. But the true cost is based on where the cost of production begins, and where it ends. You know, to raise the cattle. That could be the next prime increase you see at the supermarket.

One economist has already laid it out this way. Basic prices are going up in four categories for the rancher. At the top of his list is administrative cost. Next comes rising labor and management expenses. Then he has to keep up with his higher cost of machinery and equipment. And finally, the interest cost of the money it takes to run his whole operation. None of these are significant by themselves. But collectively, as they rise, so does the price you pay at the grocery store.

That’s Agri View for today. I’m Everett Griner…