Rabobank reports that food inflation continues to outpace overall inflation and many restaurants are feeling the pressure of nine straight quarters of declining traffic.
At the same time, U.S. retail beef prices continue rising, with the USDA’s all-fresh beef price reaching a record $9.18 per pound in August.
U.S. cattle slaughter from January through September is down 1.5 million head, a 7% drop compared to the same period last year.
Pork prices are still well ahead of year-ago levels and the five-year average, with cutout values of $109 per hundredweight averaging 15 percent above last year.
Chicken production also continues to outpace year-ago levels, and chicken prices have also come down sharply in recent weeks.
August milk production increased 3.2% versus last year, and at 9.52 million cows, the herd is the largest it’s been since the mid-1990s.
