Retail beef prices and farmer’s share up in 2011

Retail prices for Choice beef and for all fresh beef set records in December, according to the latest report on meat price spreads from USDA’s Economic Research Service. The report lists the average retail price of Choice beef for December at $5.02 per pound, up from $5.00 in November. For the fourth month in a row, the Choice price set a new nominal high.

The December average price for all fresh beef, at $4.57 per pound, topped the previous month’s average of $4.49 and also set a new high.

For 2011, the annual average retail Choice price was $4.83 per pound, while the annual average retail price for all fresh beef was $4.44. Both figures were well above the averages from 2010 of $4.39 and $4.02 respectively.

Fresh ground beef averaged $2.92 per pound at retail during December, compared with $2.90 per pound in November and $2.88 per pound in October. Round roasts also have gained value in recent months, averaging $4.56 per pound in December compared with $4.45 in November and $4.41 in October. Choice sirloin steaks on the other hand, have lost value, averaging $6.16 per pound during December compared with $6.21 per pound in November and $6.32 per pound in October.

The five-market fed-steer price for 2011 averaged $114.51 per hundredweight, up from $96.15 in 2010. Based on the net farm value of retail beef cuts, the farmer’s share of retail value for 2011 was 49.9 percent, compared with 46.4 percent in 2010 and 42.5 percent for 2009.

Retail pork values during December averaged $3.46 per pound, down somewhat from $3.51 per pound in November. The annual average pork price for 2011 was $3.43 per pound, up from $3.11 per pound in 2010 and $2.92 per pound in 2009.

The January report on meat price spreads is available online from USDA/ERS.