Rabobank reports that food inflation is outpacing overall inflation, creating challenges for the restaurant industry, which has seen nine straight quarters of declining traffic. However, some restaurant chains are thriving despite this trend, attracting more visitors and increasing spending.
In the U.S., retail beef prices hit a record high of $9.18 per pound in August. Between January and September, cattle slaughter dropped by 1.5 million head, a 7% decrease from last year. Pork prices remain well above last year’s levels, with cutout values at $109 per hundredweight—15% higher than last year.
On a positive note, chicken production has exceeded last year’s output, and prices have recently fallen. August saw a 3.2% increase in milk production, with the dairy herd reaching its largest size since the mid-1990s, at 9.52 million cows. Additionally, July dairy exports were up by 7% year-over-year.
These shifts in food prices impact consumers and businesses alike. As prices continue to fluctuate, the food industry may need to adapt to these changes to stay competitive.
For more details on food inflation trends, visit Rabobank’s report.
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