WJR: Kevin Ketels on increasing cost of meat
Kevin Ketels, assistant professor of teaching, global supply chain management at Wayne State University, participates in an interview about the increasing cost of meat, including beef and chicken. “We’re seeing even more acute pressure. We still have labor shortages. We’re seeing increased cost for grain that’s used to feed livestock. We’re seeing higher fuel costs. And all of these things are contributing to higher meat prices,” Ketels said. He said that it’s possible demand will taper off if enough people decide stop buying meat because they can no longer afford to do so. “At a certain point, I think you’re going to see people that are changing their decisions about what they’re buying. And I think it’s certainly a possibility…the prices across the board are going up and up for so many different products.” The average price for beef at grocery stores is near record levels now. “So we have the farmers – who actually say they’re getting paid less – but then we have only four primary companies doing the meat processing in this country, and they seem to be doing very well and they’re much more profitable. They’re saying that a lot of the challenges we have are due to not enough people in the economy to support the business and not enough workers. So they’re saying that’s one thing. They say that all the things they need to produce meat are more expensive…The cost for transporting food products is more expensive…They’re saying all of these things are contributing…” Ketels said he expects gas prices and the cost of other commodities to continue increasing, and that more people will start choosing to buy differently.