Markets have soared in the last year as meat producers and processors ramped up production and sales in response to record consumer demand.
But some analysts are warning that markets may be headed for a “meat bubble” as meat buyers rush to purchase meats from more than 60 different meats processors around the country.
Marketers say the meat boom is driven in part by consumers’ rising demand for cheaper meat.
But some meat processors are struggling with tight supply, and some are asking consumers to put their faith in smaller companies.
The market for beef has been booming since the beginning of the year, when U.S. meat production surged from about 11 million tonnes a year to an average of nearly 13 million tonnes.
Prices for cattle, pork, chicken, turkey and eggs have risen sharply as producers and consumers sought higher-priced meat and more expensive meats.
But while prices for beef have risen, meat prices for other meats have been lower.
Meat prices for pork, pork and chicken have fallen as demand for meat from other meats has remained low, but prices for chicken and turkey have risen.
In the short term, the meat market may be booming.
In the longer term, however, analysts say the bubble may eventually burst.
Market participants are buying meat products at a record pace, even as many smaller meat producers struggle to meet demand and raise money.
A report released Thursday by the Meat Marketing Association, a trade group for the meat industry, found that U.T. Pork and Beef futures are up more than 7 per cent in the past year.
The trade group said that prices for all meat products jumped nearly 11 per cent from January to May, compared with a year earlier.
Meat prices are expected to remain high through 2019, the group said.