WASHINGTON—Recent USDA data reveals ground beef prices are nearing record levels due to steady demand and tight supplies. If prices continue to rise during the summer, many QSR hamburger chains may see a bite out of their profits because they will be forced to raise prices at a time when consumers are watching their dollars.
As reported Meatingplace, USDA data for the week ended April 10 showed wholesale prices for 90 percent lean and 50 percent boneless beef, the typical blend used to create 80 percent lean hamburger patties sold by burger chains, were roughly $1.63 per pound and 86 cents per pound, respective increases of more than 30 percent over price lows in November last year and nearing record highs of 2008. Blended cost of 90 percent and 50 percent lean boneless beef, assuming an 80 percent lean product, was about $1.40 per pound in March, compared with $1.22 in March last year and $1.24 in March 2008. The record was $1.59 in July 2008. The 5-year average is $1.13.
