U.S. meat packers' losses on beef sales have doubled amidst recent controversy surrounding 'pink slime' beef fillers, according to industry estimate
March 30, 2012
– An industry estimate by livestock marketing advisory service HedgersEdge.com said that U.S. meat packers’ losses on beef sales have doubled amidst the controversy surrounding “pink slime” beef fillers, Reuters reported March 29.
According to the estimate, margin losses have shot up 92% this week as beef prices have fallen more than 7%. The margin is based on wholesale beef prices plus various by-products, minus the cost of market-ready cattle.
According to data from the U.S. Department of Agriculture, the price of choice grade beef was US$184.24 per hundredweight on March 28, down from a recent high of $198.80 on Feb. 29.
The primary source of this article is Reuters, London, England, on March 29, 2012.