The latest Cold Storage Report from the USDA reveals a significant year-over-year decrease in nationwide cold storage stocks of red meat, with the beef and pork sectors grappling with various economic challenges. In contrast, poultry stocks remained relatively steady, although consumers continue to favor traditionally more affordable dark meat options.
In August, the total volume of red meat in cold storage reached 920.5 million pounds, marking a 1.2% increase from July but a substantial 15.4% decline compared to the previous year. Beef cold storage stocks in August totaled 421.6 million pounds, up 2.7% from the previous month but down 17.9% from the previous year. The boneless beef category also recorded a significant drop of 17.1% compared to the previous year.
Within the beef cuts category, levels were down by 25.2% from the previous year, totaling 38.4 million pounds. However, it’s worth noting that beef stocks in cold storage typically increase in the final quarter of the calendar year.
August saw pork in cold storage amounting to 471.1 million pounds, registering a minor 0.1% increase from the previous month but a notable 13.2% decrease from the previous year. Spareribs, boneless hams, and boneless loins saw declines of 47.4%, 11.4%, and 3.5%, respectively, compared to year-ago levels, while picnics in storage increased by 24.3% year-over-year to reach 8.6 million pounds.
Some pork categories recorded gains in stocks compared to the same month in 2022, including pork bellies (3.3%), butts (1.7%), and bone-in hams (1.1%). However, pork bellies fell by 27.9% in August compared to the previous month, and sparerib stocks dropped by 12.4%. Analysts suggest that the rapid drawdown in belly and sparerib stocks may be related to inventory that was accumulated before the implementation of Proposition 12 in California on July 1, 2023.
In contrast to the red meat trend, total poultry stocks in August amounted to nearly 1.3 billion pounds, showing a marginal 0.3% decline from the previous month but a slight 0.9% increase from the previous year. Chicken stocks were down by 1.3% from the previous month but rose by 0.3% in August. Breast meat and legs saw increases of 15.4% and 15.0%, respectively, compared to the previous year, while leg quarters and wings decreased by 27.1% and 17.1%, respectively, in August.
Turkey stocks in August showed a 2.0% increase from the previous year, reaching 447.1 million pounds. These figures reflect the current state of the cold storage market, with red meat facing notable declines while poultry maintains a more stable position, albeit with some shifts in consumer preferences within the poultry category.
