New Jersey suspenders for higher meat costs
Who would have thought that after all that we have been through with the pandemic that has crippled the commercial economy of the United States, another setback is hitting us in the form of meat inflation. Yes, the price of all protein is increasing rapidly. A friend of mine, who is a meat supplier, says we can expect a 40 percent increase in meat prices, compared to what we paid in January and February of this year.
Several reasons are put forward to explain inflation; one reason is that farmers are reducing their herds to realize declining profits. Obviously, this is a process that has significant latency. There is also a transportation problem as companies struggle to recruit drivers who were made redundant during the pandemic, in addition to the rising cost of fuel due to the pipeline rupture and overseas sanctions. that created the need to tap our own surplus supply.
Transportation issues will also affect the availability of produce and dry goods. Farmers are also under pressure from high prices, soybeans and corn are at their highest level ever. My friend, the food supplier, had to increase the price of his chicken by about 40 percent more than the price at the start of this year.
The restaurant and hotel industries are once again facing another obstacle related to rising prices. They will have no choice but to raise prices at their establishment, which could cause customers to do what they did during the pandemic, stay home to eat.
Some experts say that this meat inflation can last for eight to ten months and then recover. Good luck to all of us and especially to the restaurant industry, I hope they can survive another hurdle.
The above post reflects the thoughts and observations of New Jersey 101.5 weekend host Big Joe Henry. All opinions expressed are those of Big Joe.