Pork Prices Plunge?

[bmudd14474]

Have any of you read this report?

https://www.bloomberg.com/news/arti...ends-pork-prices-tumbling-most-in-three-years

 

[tropics]

Bellies are still high in my area Hope they do come down

Richie

 

[lu1847]

Just went up a buck At my local butcher shop. Supposedly coming down though.

 

[timstalltaletav]

Haven't seen much drop yet here in PA. The prices aren't too bad lately but certainly I won't complain if they go lower.

 

[briggy]

Welcome sign!  In terms of historical median prices, we still aren't very low.  I guess we will see how low it goes.

 

[SmokinAl]

Good news!

Hope they come down around here soon.

Al

 

[mdboatbum]

Funny how when there is a report of a rise in prices we all see it at the store right away, but falling prices are much less obvious.

 

[gr0uch0]

Have any of you read this report?

https://www.bloomberg.com/news/arti...ends-pork-prices-tumbling-most-in-three-years

Economics 101:  basic principles of supply and demand, hard at work.

 
Funny how when there is a report of a rise in prices we all see it at the store right away, but falling prices are much less obvious.

And at the gas pump.  Think about the fuel that's already in the underground tanks that's been paid for being subject to price fluctuations....

 

[dward51]

Prices dropped a little around here after the superbowl, but that is normal as the stores often over stock.  Prices are not bad, but I've seen lower.  Pork butts at the local Sam's Club were $1.68 a pound last week and loins were $1.78.   Local Kroger was $3.28 a pound for single bone in butts last week (no friggin way they are selling anything at that price). Good prices on sale around here are $0.99 to $1.29 a pound on the butts and a couple of time a year we do see the $0.99 price (time to load the freezer when that happens around here).

 

[smokesontuesday]

 
Bellies are still high in my area Hope they do come down

Richie

Same here. Bellies are almost $5 a pound here as of last week.

 

[noboundaries]

Today I picked up 6 lbs of center cut, boneless pork loin for $1.88 lb.  6 lbs of boneless country pork ribs, loin cut, for $1.68 / lb.  That's about standard for Winco.  Going to cure it all. 

I don't even shop for pork belly around here.  It is cheaper to buy commercially processed bacon than it is to buy fresh pork belly!     

 

[wild west]

We are missing something here. Im a private businessman and we are getting squeased here in my industry due to the current economy(no I don't farm or produce any food products). If you pay $1/lb for anything what do you think the producers share of that dollar is. The extreme low prices force the small producers out of buisness and drive the price back up even higher for an inferior product. This is not politics its economics. Short term pain long term gain. I think most of us live pretty good lives here in Canada and USA. I'm more than happy to be able to serve my family an 8lb butt for $30 Canadian if it means more money in my neighbours pocket. Sadly I think the Lions share goes to the big box

 

[chef jimmyj]

Can't say pork is down but I sure love the post Super Bowl Chicken parts sale! With all the wings sold, legs and breasts are crazy cheap. Just got a 40lb case of Thighs for $.50 per...JJ

 

[stovebolt]

 Pork has not dropped much lately, but it's not too bad. I bought chicken leg quarters recently for $0.29 per #.

Chuck

 

[gr0uch0]

We are missing something here. Im a private businessman and we are getting squeased here in my industry due to the current economy(no I don't farm or produce any food products). If you pay $1/lb for anything what do you think the producers share of that dollar is. The extreme low prices force the small producers out of buisness and drive the price back up even higher for an inferior product. This is not politics its economics. Short term pain long term gain. I think most of us live pretty good lives here in Canada and USA. I'm more than happy to be able to serve my family an 8lb butt for $30 Canadian if it means more money in my neighbours pocket. Sadly I think the Lions share goes to the big box

I don't necessarily agree.  The "big box" used to be the "little guy" at one point.  They were smart enough to build out their businesses with economies of scale, high efficiency ratios, etc., and now they're villified?  I don't get it:  Wal-Mart is the quintessential example of this, and also the quintessential success story.  Sam took huge chances by going into small town Americana that no one else would, became successful, grew the business, and now is looked upon as the evil empire, instead of a success due to a willingness to do something others wouldn't, risk taking, and hard work.  If the "little guy" is going to try and compete with the "big box" on price and price alone, with no difference in product and service, he's absolutely going to get crushed and rightfully so.  I'll support a "little guy" and pay more if he can bring a better product or better service to the table than what the "big box" can.  If he can't, sorry, but I'm voting with my wallet, as it's ludicrous to pay more for the exact same thing with no value addition.  The monopolistic fear mongering is hugely overblown and exaggerated.

Are there studies which show that there have been small businesses that have shuttered their buildings after the big guy comes to town?  Absolutely.  But there are endless examples of where the little guy has actually flourished once the "box" has come to town, by altering their product selections or providing different services that the big guy doesn't or can't.  Adapt or adios, it's that simple.  Look around any municipality and it's seen everywhere:  grocers, hardware, pharmacies, restaurants, etc., who do quite well after Kroger, HD, Walgreens, McDonalds, etc., have come to town.  I won't even get into the "Amazon Effect," as that's a different issue for another day.  The "Chicken Little" whine doesn't fly, nor should it.   

 

[smokesontuesday]

 
I don't necessarily agree.  The "big box" used to be the "little guy" at one point.  They were smart enough to build out their businesses with economies of scale, high efficiency ratios, etc., and now they're villified?  I don't get it:  Wal-Mart is the quintessential example of this, and also the quintessential success story.  Sam took huge chances by going into small town Americana that no one else would, became successful, grew the business, and now is looked upon as the evil empire, instead of a success due to a willingness to do something others wouldn't, risk taking, and hard work.  If the "little guy" is going to try and compete with the "big box" on price and price alone, with no difference in product and service, he's absolutely going to get crushed and rightfully so.  I'll support a "little guy" and pay more if he can bring a better product or better service to the table than what the "big box" can.  If he can't, sorry, but I'm voting with my wallet, as it's ludicrous to pay more for the exact same thing with no value addition.  The monopolistic fear mongering is hugely overblown and exaggerated.

Are there studies which show that there have been small businesses that have shuttered their buildings after the big guy comes to town?  Absolutely.  But there are endless examples of where the little guy has actually flourished once the "box" has come to town, by altering their product selections or providing different services that the big guy doesn't or can't.  Adapt or adios, it's that simple.  Look around any municipality and it's seen everywhere:  grocers, hardware, pharmacies, restaurants, etc., who do quite well after Kroger, HD, Walgreens, McDonalds, etc., have come to town.  I won't even get into the "Amazon Effect," as that's a different issue for another day.  The "Chicken Little" whine doesn't fly, nor should it.   

Wal-Mart isn't the company that Sam Walton envisioned anymore. That's the main issue with their public image these days.

 

[gr0uch0]

 
Wal-Mart isn't the company that Sam Walton envisioned anymore. That's the main issue with their public image these days.

When you're finished splitting a hair, SOT, you might want to look at my post again.  Wally is but one example I used, not to mention the entire concept.

 

[smokesontuesday]

 
When you're finished splitting a hair, SOT, you might want to look at a little more openly.  There are other examples I used as well.

I'm not trying to split a hair. You said you don't get why they're vilified. Wal-Mart isn't vilified because they grew and succeeded under Sam Walton. His biography was a #1 Bestseller and it's a great read to get a grasp on exactly the things you're talking about. I doubt Jim, Rob, or Alice Walton's books would do so well if they wrote one. They're vilified because they treat their employees like dirt and they've shifted their focus from their dad's vision to one of profit above all else.

Wal-Mart is a completely different animal than the other businesses you mentioned. Can restaurants survive when McDonald's or Famous Dave's comes to town? Sure, because there are infinite ways to make hamburgers and BBQ. Levi jeans are Levi jeans though. You can argue that businesses just need to adapt but there is only so much adapting something like a clothing store can do. Their product is more or less their product and when they can't afford to sell things at a comparable price to someone like Wal-Mart due to volume buying then they're going to close. It isn't that they aren't creative or don't have a good product. They're just at an insurmountable disadvantage against a company with 100x (number pulled out of thin air) their buying power. Specialty boutiques for things like prom dresses have a niche they can survive in but the average everyday clothing store has nothing to work with outside of customer service. The problem with that is studies show that lower prices, especially when it comes to being able to conveniently buy everything in one place, trump customer service every time.

In larger cities the Wal-Mart effect is lessened for myriad reasons but in small towns, which is what most of those studies cover, it is an unwinnable fight. If Wal-Mart comes to town you might as well shutter your small business and look for something else to do if your product line overlaps. You're more than welcome to come visit me in Tahlequah, OK and I'll take you through the shuttered up downtown. Go to Muskogee or Pryor or Wagoner and you'll see the same. Go to any number of small towns in Arkansas, Missouri, or anywhere that Wal-Mart has a presence. You'll very likely see the same no matter where you go. Is this because all of those towns lack imaginative small business owners or is it simply an unwinnable situation?

 

[gr0uch0]

 
I'm not trying to split a hair. You said you don't get why they're vilified. Wal-Mart isn't vilified because they grew and succeeded under Sam Walton. His biography was a #1 Bestseller and it's a great read to get a grasp on exactly the things you're talking about. I doubt Jim, Rob, or Alice Walton's books would do so well if they wrote one. They're vilified because they treat their employees like dirt and they've shifted their focus from their dad's vision to one of profit above all else.

Wal-Mart is a completely different animal than the other businesses you mentioned. Can restaurants survive when McDonald's or Famous Dave's comes to town? Sure, because there are infinite ways to make hamburgers and BBQ. Levi jeans are Levi jeans though. You can argue that businesses just need to adapt but there is only so much adapting something like a clothing store can do. Their product is more or less their product and when they can't afford to sell things at a comparable price to someone like Wal-Mart due to volume buying then they're going to close. It isn't that they aren't creative or don't have a good product. They're just at an insurmountable disadvantage against a company with 100x (number pulled out of thin air) their buying power. Specialty boutiques for things like prom dresses have a niche they can survive in but the average everyday clothing store has nothing to work with outside of customer service. The problem with that is studies show that lower prices, especially when it comes to being able to conveniently buy everything in one place, trump customer service every time.

In larger cities the Wal-Mart effect is lessened for myriad reasons but in small towns, which is what most of those studies cover, it is an unwinnable fight. If Wal-Mart comes to town you might as well shutter your small business and look for something else to do if your product line overlaps. You're more than welcome to come visit me in Tahlequah, OK and I'll take you through the shuttered up downtown. Go to Muskogee or Pryor or Wagoner and you'll see the same. Go to any number of small towns in Arkansas, Missouri, or anywhere that Wal-Mart has a presence. You'll very likely see the same no matter where you go. Is this because all of those towns lack imaginative small business owners or is it simply an unwinnable situation?

Drive through your area on old 69 from Big Cabin down to Dallas quite frequently, SOT, so I see it.  I also see it where I am:  an existing Wal-Mart was prevented for years from opening a supercenter with groceries, as the fear-mongering ran rampant through the area--no bigger box, will run the local grocers out of business, etc., in a community of less than 10K.  Guess what didn't happen?  Nor did the local pharmacy go TU when Walgreens came to town, yet the doomers and gloomers were out in full force.  They chose to distinguish themselves by offering deliveries, additional product lines that the "boxes" didn't carry, etc., so you can't say that Wal-Mart is a different breed than the other examples I put out.  Banks are another example:  talk about there being no product distinction whatsoever.  Yet community banks and credit unions are flourishing because of their ability to service the client more nimbly and capably vs. the big boys, and not competing on pricing alone.  To use your clothing store example:  can they adapt?  Perhaps, perhaps not.  If they can't, maybe it's time to go, as those who have figured it out and are doing things more efficiently and inexpensively aren't villains.  They've simply built a better mousetrap.  No one's immune--look at what's happening to JCP, Sears, Macy's, etc., largely because they haven't adapted and shifted to today's business world--should Jeff Bezos and Amazon be considered the scourge of society?  Not happening, not should it.  Again, adapt or adios:  doesn't get any more simple than that.

 

[geezer]

Pretty sure this was a loss leader promotion by Hy-Vee and not a larger trend in the market, but I did grab an 8lbs Boston butt yesterday for .99 cents per pound. 

Now if I can find a reasonably priced packer I'll be set for a few weeks.