Pink slime beef crisis hits pork

Tuesday, June 5, 2012

The Lean Finely Textured Beef (dubbed 'pink slime') crisis is having an effect on pork prices, according to meat industry market experts.

Cheaper beef trimmings prices are also pulling down pork trimming prices, where the end products are smoked or spiced. That means products like pork sausages have a cheaper substitute ingredient.

According to the April 5 CME Group Daily Livestock Report, pork trim prices have fallen steadily since March. Pork trim in general has fallen to 54 cents a pound from 70 cents. Usually, pork trim value increases with the baseball season in the United States.

ABC News ran a series of dramatic and damning reports that depicted the use of beef trimmings in an unfavourable way and questioned a major processor's food safety practices. The processor closed three plants. The result is that millions of pounds of trimmings quickly backed up and spilled into the same markets pork trimmings usually fill.

As is often the case, there is no single reason to blame for falling prices. Lower than expected exports and an uncertain economic situation in the United States isn't helping move pork scraps out of the system. BP