Why is ground beef 50% Off with $130 Oil??
I was at the local grocery store last night, and I happened to see a big sale on lean ground beef.
50% OFF on LEAN GROUND BEEF
But with oil recently hitting prices over $130 shouldn’t prices for something like ground beef, which requires many different products of which oil/oil by-products are included in the manufacture or transportation of:
Feed, trucking of animals, meat to store, packaging, etc.
All of these inputs are price sensitive to oil prices, with the most glaring example recently being FEED.
So what explains the fact that meat prices are 50% OFF or have not “inflated” with just about everything else?(gas, other food, clothing)
Massive Slaughter. Cattle and other animals are currently being killed at a rapid pace as sensible financial choice option to feeding them extremely highly inflated feed compared to the prices these same farmers are being paid for their animals.
Inflated feed prices(Corn up almost 50% in 2008 alone)=Short-term massive slaughter=50% OFF Ground Beef
What does this mean for the future? Possibly skyrocketing meat prices in 10-12 months when there will be a shortage of animals to slaughter due to the current reaction to feed prices by ranchers/farmers.
Look for rising meat prices in the coming future at a grocery store near you.
