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Restaurant Industry News
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Sunday June 11th, 2006 |
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Fad diets fade, leading to domestic protein glut
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Export Problems Add To Oversupply Of Meat |
Too much of a good thing isn't good for anyone. That goes for protein, too. After years of people stuffing themselves with chicken, pork and beef while they were following low-carb diets like Atkins, the meat industry is looking at a glut as the diet trend turns toward a more balanced approach.
Benchmark wholesale prices for beef and pork are down more than 8 percent from a year ago and 20 percent for chicken, according to the Livestock Marketing Information Center.
''There is just an overabundance of protein on the market,'' the center's Jim Robb said.
Retail prices for meats are forecast to be flat to 1 percent lower this year compared with a 2 percent to 3 percent increase for all foods, according to the U.S. Department of Agriculture.
Agricultural economists said the oversupply and subsequent dip in prices is part of the normal business cycle. Good profits in 2004 and 2005 tempted farmers and agribusiness companies to raise production faster than the growth in demand.
But changing diets have helped pressure the market, as have export problems for beef and chicken.
External Source - For the complete article click here
San Jose Mercury News
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