Grocery store meat supplies will drop in May while prices rise: report

U.S. shoppers could be in for more difficulties at the grocery store this month. According to a new report from agricultural lender CoBank, meat supplies for retail grocery stores could drop almost 30% by Memorial Day, leading to retail pork and beef price increases as much as 20% higher than last year.

President Donald Trump recently tried to maintain the country’s processing operations by deeming plants critical infrastructure, and some key plants have begun gradually reopening. Still, even if the reduction in processing capacity is temporary, CoBank said it will likely have a lasting impact on producers, processors, stores and customers.

“Margins for cattle and hog farmers have fallen to multi-year lows,” said Will Sawyer, lead animal protein economist at CoBank. “As meat plants have closed, farmers are left with few options for their livestock, requiring herds to be culled. Shrinkage in the U.S. livestock herd will likely make the food supply shortage more acute later in the year.”

Sawyer said that pork and beef production is down about 35% compared to the same time last year, making retail shortages and price inflation likelier.