Dive Brief:
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A Fourth of July cookout including Americans’ favorite foods will cost 1% less this year — $5.57 per person compared to $5.61 in 2016, according to the American Farm Bureau Federation’s informal survey.
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Pork, one of the more expensive items on the list, is down from $13.36 last year to $12.76 this year — a significant 4% decrease.
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Competition in the meat case is what is making grilling for the holiday more affordable. “As expected, higher production has pushed retail meat prices down,” Director of Market Intelligence John Newton said in the written statement.
Dive Insight:
These prices are good news for carnivores everywhere. Prices are dropping as consumption is increasing, making for busy grills this summer. According to a study from Rabobank, meat consumption is growing at its fastest rate in 40 years.
Higher production of meat has pushed its retail prices down, and grocers are set to capitalize on both price and consumers' tradition of grilling. Plant-based proteins used as meat alternatives are also becoming more popular, and are likely to make an appearance on many grills nationwide this week.
The drop in pork prices is not necessarily surprising, given market conditions. Newton said in the written statement there is more of it on the market. He said the ample supplies of other meats have also pushed prices down.
Cheeseburger lovers are also in luck. The cost of cheese is also down from last year, and American cheese dropped by 8%. Last year, the dairy industry saw a vast oversupply, and cheese producers needed to be bailed out by the U.S. Department of Agriculture twice.
While the oversupply issue seems to be over, the industry faces increased competition from non-dairy alternatives. More than 40 million Americans are lactose intolerant, but many more than that are looking for alternatives to dairy products. The non-dairy industry is able to push its environmental, ethical and health agenda to appeal to a wide range of consumers — not just those with food allergies. While non-dairy cheese has not yet reached the popularity of nut and soy milks, cheesemakers may be lowering their prices to stay relevant.
These lower prices could mean that shoppers will spend more at the grocery store this holiday. Grocery stores need to capitalize on this opportunity by highlighting and promoting the cookout items in advertisements and in the store. The falling prices on these food items may mean grocers have less of an incentive to offer further discounts on their products. However, the Bureau of Labor Statistics is seeing food deflation gradually declining, meaning the holiday may be retailers' chance to use price to attract more consumers to their stores.