Poultry and pork prices are expected to fall 5-9% and 4-13% next year, respectively. The decrease in chicken breast meat prices could result in cheaper menus at fast casual and fast food retailers including McDonald’s, who recently abolished the Dollar Menu. The price of pork reached a record high this year, so the dramatic price cut will come as a relief. Bloomberg News attributes the price decrease of poultry to the 20% decrease in the price of corn, a dietary staple for chickens. On the contrary, beef costs will most likely not decrease until mid-2015 at the earliest, according to a report by purchasing co-op SpenDifference LLC.
Here are some tips for controlling costs:
- Because of the predicted drop in wheat prices, look at breads and identify savings.
- Both canola and soy oil are forecast to increase in 2014. If possible, take coverage at today’s levels to add price protection.
- Take coverage in the front half of 2014 to protect from seasonal increases in the back half of the year for cheese.
- Draft a food-cost purchasing forecast to identify areas of savings and potential cost increases.