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Buying Opportunities Increase for Pork

Meat and poultry features are bountiful this week as consumers hunker down for hearty home-cooked meals during chilly autumn evenings. While Halloween is just around the corner, some retailers are already showcasing Thanksgiving promotions.

This week in retail, buying opportunities were lower week-over-week for turkey and seafood features. Towards the tail-end of October National Pork Month, marketing campaigns pushed pork features higher than the previous week. Meanwhile, retail activity for chicken and beef was nearly flat with the week prior.

Buying opportunities for seafood this week are centered around fresh/frozen fillets—namely tilapia—and raw shrimp. The fresh/frozen fillets complex makes up 33% of ad space and averages $6.89 per pound, 20.1% above a year ago. Tilapia is up 7.8% from this week last year at $5.93 per pound on average. Atlantic salmon boneless filet is also widely featured and averages $8.68 per pound, compared to $7.70 per pound last year. The raw shrimp complex claims 23% of ad space. The regional price spread for 16-20 raw ranges from $6.99 per pound to $8.99 per pound, generally on par with year-ago levels.

Over in pork, ribs along with roasts features are stealing the spotlight. Rib features account for 26% of ads this week and average $3.27 per pound, up from a year ago but priced favorably against competing proteins. Chops account for 24% of ad space and average $3.09 per lb., down 6.1% from last year. Boneless center cut chops continue to command a premium to bone-in chops due to conversion limitations and ongoing labor shortages.

Pork roasts features claim 28% of the total pork retail ad complex. The roast complex is up 19.5% from 2020, averaging $3.07 per pound. Some retail pushback has been noted for bellies since bacon prices remain at record high levels. Brand label bacon averages $6.23 per pound this week, up 6.5% from last year and 18% above the previous record for this week held by 2017. Urner Barry’s pork carcass cutout value has softened by about 22% from its summer peak but remains historically high for this time of year.

Steaks take center stage in beef features this week with 38% of total beef ads. Roasts and ground beef features both account for about 27% of retail buying opportunities. The steak complex is 11.1% above a year ago at $8.22 per pound on average. However, some cuts like tenderloin and bone-in rib are less expensive relative to last year. The roast category is up $2.41 per pound on average, at $7.35 per pound. Top round London Broils, which can be used for slow-cooking applications, are a whopping 48.2% above a year ago. 80% lean ground beef is on feature for an average of $3.51 per pound this week, up 53 cents per pound from this week in 2020.

Boxed beef prices are seeking support following a steady decline from their record peaks from a seasonal standpoint established in late August. Renewed seasonal demand could help firm cutout values in the weeks ahead as retailers begin to secure product for the holiday period.

Turning to chicken, boneless skinless chicken breasts and some dark meat items like thighs and drumsticks dominate feature activity this week. Boneless skinless chicken breasts are featured at $3.54 per pound on average, up 4.1% from a year ago. 80% lean ground beef and some pork items like chops are competitively priced against boneless skinless breasts this week. The dark meat complex, however, could help chicken win consumer dollars at the meat case. Prices this week are as low as $0.39 per pound on leg quarters and $0.85 per pound on drumsticks.

For eggs, the fall time typically supports retail egg sales since more consumers are cooking hot breakfasts and baking as cooler weather settles in. Large eggs average $3.25 per dozen this week. This is up 15% from last week and 34% above the year prior. In the wholesale market, shell egg prices based on the benchmark Midwest large spot quotation saw a sharp uptick during the month of August, hitting a five-month high at $1.48 per dozen during the last full week of August. Since then, the market has adjusted significantly lower and is currently down about 29% from its summer high. Egg advertisements are expected to increase in the weeks ahead as retailers prepare for a shift to holiday-oriented demand.

Par : Courtney Shum (22/10/2021)

Source : Foodmarket Newsletter (Urner Barry)

Article original paru sous le titre : This Week In Retail: Buying Opportunities Increase for Pork

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