Recent Price Trends in the Meat Industry
An overview of Animal Slaughtering and Processing price indexes
U.S. Import and Export Price Indexes contain data on changes in the prices of nonmilitary goods and services traded between the United States and the world. The U.S. Bureau of Labor Statistics produces these indexes, which are Principal Federal Economic Indicators.
Q: How have import animal slaughtering and processing prices trended over the 2020–2022 period? (See chart 1)
- Animal slaughtering and processing import prices advanced 7.2 percent from December 2019 to December 2022. The import price index for animal slaughtering and processing decreased 2.6 percent from December 2019 to December 2020. The index then increased 21.5 percent in 2021, before decreasing 9.4 percent in 2022.
- The import price index for animal slaughtering and processing peaked in June 2021 for the 3-year period ended December 2022, after advancing 27.5 percent from December 2019. The index then declined 15.9 percent from June 2021 to December 2022.
Q: How did import animal slaughtering and processing prices compare with other economic data? (See chart 1)
- Import prices trended slightly lower to export prices for the majority of the 3-year period. Like import prices, producer prices trended upward overall from December 2019 to December 2022, while export prices ended slightly higher over the same period.
- The producer price index for animal slaughtering and processing increased 21.9 percent from December 2019 to December 2022. The index advanced 35.4 percent from December 2019 to June 2022 due to continuing disruptions related to the Covid-19 pandemic. Prices drifted downward after peaking in June 2022, decreasing 10.0 percent from June to December 2022.
Q: How have export animal slaughtering and processing prices trended over the 2020–2022 period? (See chart 1)
- Export animal slaughtering and processing prices rose 30.2 percent from December 2019 to December 2022. Export prices decreased 0.7 percent in 2020 and increased 38.2 percent in 2021. Export prices then declined 5.1 percent in 2022.
- The export price index peaked in May 2022 for the 3-year period ended December 2022. The index advanced 41.4 percent from December 2019 to May 2022.
Q: What are the top six exporting states and territories for animal slaughtering and processing? (See chart 2)
- In 2022, the total trade value of exported animal slaughtering and processing was just under $29.4 billion, up 4.4 percent from 2021.
- Texas ranked first for exported animal slaughtering and processing with $4.2 billion in export trade, which accounted for 14.2 percent of total U.S. animal slaughtering and processing exports.
- Kansas and Nebraska ranked second and third, respectively with $2.4 billion in trade dollar value, each accounting for about 8.2 percent of total U.S. animal slaughtering and processing exports.
Q: How are import and export price indexes useful to you?
Import and export price indexes can provide a new perspective for your trade analyses. Although many sources report domestic market prices and trade volume, IPP data are unique in measuring import and export price movement.
For example, if you are involved in the meat industry and are considering conducting business overseas, IPP animal slaughtering and processing indexes can supplement your industry research by providing long-term import and export price trends.
Q: How are import and export price indexes used?
Import and export price indexes are used for a variety of purposes:
- In the conversion of U.S. trade figures from current dollars to constant dollars in U.S. trade statistics including the Bureau of Economic Analysis’ Quarterly Gross Domestic Product and the Census Bureau’s monthly U.S. trade statistics.
- To assess the impact of international trade on domestic inflation and the competitive position of the United States.
- As a tool for analyzing fiscal and monetary policy, measuring the impact of exchange rates, and escalating trade contracts.
- To identify industry-specific and global price trends.
Last Modified Date: July 12, 2023