CHICAGO—Speaking at the Food and Agriculture Summit, Bill Lapp, economist and president of Advanced Economic Solutions, said higher costs for beef, dairy and pork will mean U.S. consumers will pay 4 percent to 5 percent more for food by December versus the same time last.
As reported by Reuters, higher meat prices are due to cattle and hog producers shrinking herds after years of losses. USDA estimates 2010 U.S. beef production down 1.3 percent from 2009 and pork production down 2.5 percent. USDA estimates wholesale milk prices up 21 percent to 26 percent and cheese prices up 16 percent to 20 percent in 2010.