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Meat Chiller Inventories swell
United States inventories of meat stored in cold storage rose significantly over the spring and summer of 2012. The levels reached are much higher than the levels at the same time in 2011 and five year average levels.
In previous years, an increase in meat stored in meat chillers indicates slowing demand for meat products, or logistics issues. This is not the case today as meat companies are seeking to address the economic crisis, particularly rising prices in meat products. Storing meat in inventories as an attempt to hedge against expected future price rises is becoming very common. Food costs are particularly high and recent inflation information doesn’t do much to indicate that his is changing. The latest cold storage surge gives a distorted indication of the supply situation, below is the pork, poultry and beef inventory summary.
Pork inventories rose significantly in August and September as meat produces increased output to try to beat surging feed costs. Total pork in meat chillers storage was recorded at 630.7 million pounds which is 28% higher than the same time period a year ago. Ham cold storage inventories are also, 31% larger than last year. The holiday period traditionally sees a surge in meat consumption which will deplete these figures in the months to come whilst excess supply will be shipped to Mexico.
Total beef in cold storage has actually reduced year on year to 425.6, which is 0.5% lower than a year ago. Boneless beef inventories declined also recording a 3.2% decrease on last year’s total. However, inventories of cuts of beef in meat chillers rose 13% month on month.
Broiler meat and poultry in cold storage experienced a 2.7% decrease year on year weighing in at 651.7 million pounds. Wing inventories are up 31.9% whilst breast meat inventories decrease. Turkey stocks were 521.2 million pounds, 2.3% larger than a month ago but still about 4.3% lower than the five year average.
Meat chiller cold storage is in high demand, particularly ahead of the holiday season. CRS cold storage offer meat chillers for rent and lease and hire meaning giving you flexibility in your storage needs. Please visit www.crs.ie for more information about meat industry cold storage.
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