Market Outlook

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Consumer Price Indexes for Animal Products Higher in 2021

The U.S. Department of Labor’s Bureau of Labor Statistics released consumer price indexes (CPIs) for 2021 on January 12, 2022. The chart below compares the 2021 and 2022 CPIs for all products and for food, beef, pork, poultry, eggs, and dairy products. The CPI for all items, a measure of inflation, increased 4.7 percent from 2020 to 2021. The CPI for food increased at less than the overall inflation rate, 3.9 percent. The inflation rates for beef and veal, pork, and poultry all exceeded the general inflation rate. The CPIs for eggs and dairy both increased less than the general inflation rate.

Beef/Cattle: The 2021 commercial beef production forecast was raised slightly from last month to 27.950 billion pounds on higher non-fed cattle slaughter and heavier carcass weights. Fed and feeder steer prices were raised in 2022. November’s beef imports totaled 297 million pounds, up 27 percent from a year ago. The 2021 annual forecast for beef imports was increased by 40 million pounds from last month to 3.355 billion pounds. The 2022 beef import forecast was unchanged from last month at 3.265 billion pounds. Beef exports in October were up 298 million pounds, 8 percent above last year. The annual forecasts for 2021 and 2022 beef exports were unchanged from last month at 3.455 and 3.270 billion pounds, respectively.