USA, Washington, DC. The seasonal upswing in bacon consumption, combined with tight supplies of slaughter-ready hogs has pushed prices for pork bellies to record highs in UK and the US.
In the United States, wholesale prices for pork bellies soared more than 70% since the start of 2017, while retail prices for bacon jumped more than 20%. Meanwhile, pork bellies in cold storage are at a 60-year low.
In the United Kingdom, it’s the same story. Average prices for bacon have advanced 10%, while sausage prices have surged an average of 20%. Demand for pork in China has been cited as the main driver of higher prices for pork.
The conditions of tight supplies, strong demand and higher prices are forecast to persist into 2018. In its Livestock, Dairy and Poultry Outlook report, the Economic Research Service (ERS) of the US Department of Agriculture (USDA) said pork production is likely to increase for the balance of 2017 and into 2018. However, strong demand for pork – both domestic and foreign – is expected to keep hog prices year-over-year higher in the second half of 2017 and through the first quarter of 2018.