MONEY

Craving something hot off the grill? The price is right for burgers, steaks and chops, economists say

Donnelle Eller
The Des Moines Register

Barbecue fans this summer should find lower prices than last year for pork chops, steaks and hamburgers, thanks to increased production on farms in Iowa and elsewhere, say economists.

But the good news comes with a rub that meat lovers might not like: Prices have grown since the beginning of the year.

A group from Rabo AgriFinance grill pork burgers during the 2017 World Pork Expo at the Iowa State Fairgrounds.

For example, ground chuck was $3.68 a pound in April, 25 cents lower than a year ago. But it's 6 cents higher than the January, U.S. Department of Agriculture data shows.

And pork chops cost $3.44 a pound in April. It's about 30 cents lower than a year ago but nearly a dime higher than four months ago, USDA reports.

Strength this year is "reflective of the strong demand," both in the U.S. and exports, said Lee Schulz, an Iowa State University economist.

Schulz expects prices for beef and pork to stay about the same — or grow slightly — this summer.

Pork supplies are expected to reach a record this year, topping last year's record, economists say. Beef supplies also are growing.

"Everyone should grill twice as much," joked David Calderwood, a Traer pork producer, about the larger supplies. He was helped man the Big Grill at this year's World Pork Expo.

Schulz said grocers should offer lots of good deals like two-for-one offers.

"There are two big weekends retailers are preparing for — Father's Day and Fourth of July," Schulz said. "They'll want to move a lot of products."

Chicken supplies are good, too, he said, with prices slightly lower than a year ago and mostly flat this year.

A whole chicken, for example, cost $1.44 a pound in April, about 6 cents less than a year ago and 2 cents more than January, USDA data shows.

Steve Meyer, vice president at EMI Analytics, based in Fort Wayne, Ind., said pork supplies typically get tighter — and prices a little higher — in the summer.

But both should improve this fall and winter.

Meyer expects to see lower beef prices in the months ahead with cattle production growing "pretty dramatically."

Consumers shouldn't expect quick shifts in prices, though.

"Retail prices react slowly to these drops in wholesale prices and farm level prices," Meyer said.

Lower prices mean Americans are eating more meat.

U.S. per capita consumption hit a record high in 2006 around 220 pounds, Meyer said. The "number dropped to 200 pounds just four years ago, driven by much higher grain prices" and production costs, he said.

A drought in 2012 pushed corn and soybean prices to record highs. Farmers reduced herd sizes, tightening supplies.

That drove retail prices higher.

Corn and bean prices have tumbled about 50 percent in recent years, sparking more pig, cattle and chicken production.

Meyer expects Americans will each eat about 217 pounds of meat this year and return to the record by 2019.

Dermot Hayes, an ISU ag economist, said barbecuers should build their summer around pork chops and loins.

"Ribs and bellies are expensive compared to last year," Hayes said. But "loins will be very cheap."