Tom Purcell: Why is the price of beef higher than ever?

There are few things I love more than grilling delicious steaks for a group of close friends, but red meat won’t be on the menu this summer.

The cost of beef is higher than ever.

According to Bloomberg, “Food inflation has been rising steadily for months, due to soaring commodity prices, more expensive transportation, and challenges in securing the workforce.”

“Inching up” is to put things lightly.

“Outbreak” would be a more accurate description – thanks to the COVID disruptions and the crippling government lockdown policies enacted because of them.

Restaurant Business explains that in the early months of COVID, restaurants, the biggest buyers of beef, shut down – reducing demand.

If that wasn’t enough, Restaurant Business says, the virus has spread among workers at Midwestern meat-packing plants and forced them to shut down or significantly reduce production in 2020.

So why are beef prices skyrocketing in 2021 as restaurants open and life slowly begins to return to normal?

In addition to the law of supply and demand, you can thank the generous government policies on unemployment.

Butchery is a labor intensive process – but this year meat packing plants have been unable to fill thousands of vacancies because in many places the combination of unemployment benefits from the state and federal government makes not working more attractive to many than working.

Since packing plants cannot fill thousands of vacancies, they cannot process enough meat to meet growing demand. –And because packing plants buy less meat, ranchers slaughter fewer cattle.

As growing demand for beef collided with shrinking supply this spring, prices have skyrocketed – and they’re likely to continue to rise, according to Jason Cheplic, the third-generation owner of my favorite local butcher, Cheplic Packing, Inc. .

“In our 60 years in business, beef prices have never been higher,” says Cheplic. “Before COVID, we ran a boneless prime rib eye for $ 9.99 a pound. To cover our payroll and trading costs, we now have to charge $ 13.29 a pound – with lower profit margins than ever before. “

That’s a 40% price increase in just over a year – and Cheplic’s rib eye is still priced much better than supermarket chains charge.

A local Pittsburgh chain charges $ 15.99 a pound for the same cut of meat.

This means that weekend grill and grill lovers like myself experience severe pain in our wallets – and in our stomachs.

With summer coming and life slowly starting to return to normal, I was looking forward to hosting many evening barbecues.

Before COVID, there were few things I loved to hear more than the words, “Oh my God, that juicy rib eye steak is as tender as butter!”

But this year, I hope to at least hear, “Tom, this is the most delicious budget burger meat I have ever had!”

Or: “Tom, these inexpensive chicken thighs are the tastiest meal you’ve ever made!”

And maybe, “Tom, this meat is delicious, but why does it feel like the tread of a Goodyear tire?”

Hey, nothing but the best for my friends!

Either way, industry experts predict beef prices will worsen before they get better.

Until they get back to Earth, we weekend grill masters will need to get more creative in moving our barbecue nights forward.

By the way, I was joking about the barbecue on the road.

Tom Purcell is an author and humor columnist for the Pittsburgh Tribune-Review. Email him at [email protected]