After hitting record highs over the summer, bacon prices have come down to earth—and even cheaper prices are on the way.
The retail price of bacon hit an all-time high during the summer of 2014, but has since retreated, dropping 5.7% by early December, according to Bloomberg News. What's more, all signs indicated at the time that prices for pork, ham, and bacon would keep on decreasing. "Hogs and pork are almost surely going to be cheaper, particularly compared to beef, next year,” Doane Advisory Services economist Dan Vaught said.
Sure enough, pork prices are plunging in early 2015. On Tuesday, the Wall Street Journal reported that farmers have rebounded from a virus that decimated pig herds in 2013 and early 2014, and that the nation is riding high on the hog in terms of a record number of pigs approaching slaughter weight. Forecasts call for an all-time high of 23.9 billion pounds of pork to be produced in the U.S. in 2015.
“It’s amazing. We’ve gone from ‘We’re going to run out of pork!’ to ‘What are we going to do with all of this meat?’” John Nalivka, president of the Oregon-based agriculture-advisory firm Sterling Marketing Inc., told the Journal.
Well, one thing they're clearly going to do is cut prices. Hogs are currently trading at four-year lows on the futures market. Supermarkets are paying less for pork wholesale, and they have begun passing along the savings in the form of cheaper ham, pork loins, and yes, bacon. Last summer, the average retail price for a pound of bacon was over $6 per pound. By December 2014, according to the Bureau of Labor Statistics, a pound of bacon was averaging $5.53 in U.S. grocery stores, and $5.10 in the Midwest.
The funny thing about bacon is that people love it so much that demand stays incredibly high even when prices rise, and the masses are prone to panic with the slightest hint of bacon being in short supply. And when bacon prices become cheaper, that's a justification for some bacon lovers to take their bacon consumption to the next level. Businesses that profit on bacon-aholics will surely be more than happy to help. Look for more bacon to be incorporated into restaurant menus and on sale at supermarkets in the months ahead.