March 6

With cattle futures setting new 8-year highs last week at $167.50/cwt on 2/28, and beef supplies looking to be constrained for the foreseeable future, the restaurant industry will need to rely on alternative proteins for some food-cost relief. Producers appear to be responding. Last week, the USDA reported that total red meat in cold storage in January was up 9.4% from a year ago, led by a 19.2% jump in pork supplies. Pork bellies in cold storage are 56.9% above last year’s depleted stocks and, subsequently, belly prices are 32% below last year’s sky-high levels. Total poultry in cold storage is 13.4% above a year ago led by a 47.8% jump in chicken breast supplies. USDA boneless skinless breast prices averaged $1.32 per pound last week vs. $2.77 a year ago. With labor markets looking to weaken in 2023, protein producers should be back to full strength soon - and in a better position to offer menu alternatives.