01-03-2025
Beef prices rising as supply dwindles; local impact low for now
Amid data from the Bureau of Labor Statistics showing beef and veal prices were 5.5% higher in January than the same time in 2024, Joe Fasula noted the cost to customers remained stable at Gerrity's grocery stores throughout the region this winter.
'We saw a bit of a spike back in the fall and we adjusted some retail (prices) back then,' he said. 'The market has kind of been up and down since then, but nothing really drastic that would make us change prices. We've been status quo. There is really nothing we've seen in the last several months that has been a big move, one way or the other.'
However, Fasula, co-owner of Gerrity's Supermarkets, which operates 10 supermarkets throughout Lackawanna, Luzerne and Northampton counties, anticipates likely increases as the weather starts to warm up.
'Nobody has a crystal ball, but steak always goes up as we get closer to the summer holidays,' he said. 'It typically starts to increase right around Memorial Day and then Father's Day and the Fourth of July. I expect to see that happen (again).'
Researchers from the U.S. Department of Agriculture expect moderate increases in the price of beef and veal this year, compared to 2024, due to tight supplies and continued demand. The department's 2025 food price outlook predicts prices will increase 3.2% in 2025.
Prices for farm-level cattle were 20.6% higher in January 2025 than January 2024, while prices for wholesale beef were 14.8% higher, according to the U.S. Department of Agriculture. Cattle and beef prices are elevated as a result of tight cattle supplies from a cyclical contraction of the cattle herd, as well as a temporary import ban on cattle from Mexico between November 2024 and February 2025 following detection of New World screwworm, a parasitic fly larvae, department officials said.
Fasula (FILE)
Meanwhile, Fasula doesn't see an end in sight for the rapid price increases of another grocery store staple: eggs.
'The strange thing is eggs, which used to be a very inexpensive source of protein, have come up quite a bit to the point where they're getting close to being on par with chicken,' he said.
Prices for farm-level eggs climbed 31.4% between December 2024 and January 2025, according to a Department of Agriculture report. Farm-level egg prices continued to experience large monthly changes as the ongoing bird flu outbreak continued to affect egg-layer flocks, department officials said.
In January 2025, prices for farm-level eggs were 183.7% higher than January 2024 and surpassed the previous peak prices recorded in December 2022, USDA officials said. Additionally, farm-level egg prices are predicted to increase 82.6% in 2025.
All the volatility within the industry creates continued uncertainty for pricing going forward.
'We're over $8 (a dozen) on our cost right now,' Fasula said. 'When we went over the $7 mark on our cost, we tried to hold at $6.99 and now we're trying to hold at $7.99, but we're expecting it to continue to go up. I have no idea what to expect for Easter — $10 a dozen could be a possibility.'
