The rising grocery prices, combined with increases in costs for other crucial industrial staples like lumber, real estate, and airfare, have made the last couple of years difficult for many businesses and families trying to make ends meet. With supply chains across multiple industries impacted by Covid challenges, labor shortages and raw materials supply shortages across the globe means that staple or lower food costs won’t be rolling back to earlier prices. This means consumers won’t be seeing a reduction in food costs any time soon.
The USDA Consumer Price Index (CPI) for Food predicts increased costs for essential food items, such as meat, poultry, fish, and eggs. Below, we’ll discuss the food price forecast for the rest of 2021, why food is getting more expensive, and how Marvell Foods can help combat these rising grocery prices.
Meat Price Increase 2021
When it comes to the meat price increase in 2021, the cost of food at home and restaurants have already reached all-time highs. When analyzing the CPI, which measures economy-wide inflation, from 2020 to 2021, the cost of at-home food increased by 1.6%, and the food price at restaurants increased by 2.8%. Overall, the CPI of all food increased by 2.1%.
The USDA predicts these costs will keep rising into early 2022 as we still grapple with the ripples of the COVID-19 pandemic. At-home food prices are expected to increase by 2-3%, and the cost of food at restaurants is also predicted to rise between 3-4%.
Some of the most expensive food items include the following:
The food price forecast for 2021 covers all kinds of meat, including beef, veal, pork, and poultry. Here is a breakdown of the CPI increases from May-June 2021 and how much they are expected to still rise during the year, according to the USDA:
- Beef and veal +5.3%, expected increase 3-4%
- Pork +4.0%, expected to increase 4-5%
- Poultry +0.9%, expected to increase 2.5-3.5%
Overall, the USDA predicts that meats will increase 3-4 percent by the end of 2021. This is already adding to the current-day dramatic price increases meat experienced in 2020. In February 2020, beef and veal prices were already a staggering 13.2% higher than pre-pandemic times. And in June 2020, pork climbed to 11.4% higher than pre-pandemic times.
Here are some examples of what this means for your wallet. The national average pre-pandemic price for a pound of bacon was around $4.72. Now the average price sits around $5.11. Ground beef climbed from $5.02/pound to $5.25/pound on average.
Fish and Seafood
The food price forecast for fish and seafood is looking more expensive as well. Overall, from May to June 2021, the CPI in this category increased by 1.6 percent. The USDA predicts fish and seafood will increase by 2-3% by the end of 2021.
Some good news is that fruit prices decreased by 0.9% from May to June 2021. However, increases are on the horizon. Prices are still a staggering 5% higher in 2021 than in 2020, and the USDA predicts fruit will increase by 5-6% by the end of 2021.
Why Is Food Getting More Expensive?
One of the reasons why food is getting more expensive is related directly to the COVID-19 pandemic. More families are cooking all three meals at home, so they buy more food than ever before. Some families even stocked up on food, nervous about the long-term implications of the pandemic.
But, with an explosive increase in demand, food production could not keep up, especially in the face of widespread personnel shortages. Many food processing facilities were shut down due to cases of COVID-19. Additionally, broken supply chains due to high gas and oil prices also contributed.
How Marvell Foods Helps Combat Rising Grocery Prices
We are a leading closeout food buyers company. As the premier, nationally recognized leader in the secondary food market, Marvell Foods buys surplus or closeout items from food manufacturers and other food producers at deeply discounted prices and passes the savings along to Marvell customers – grocery chains, independent retailers, food banks, and a host of state and federal government institutions.
We buy and sell many different products, including the ones predicted to see price increases:
- Shelf-stable items
- Bakery goods
- Macaroni and cheese
- Egg rolls
- French fries
If you’re looking to buy or sell your products, please contact us today.