Compiled by Avendra’s Strategic Sourcing Team

Avendra’s supply chain experts are working diligently to keep customers informed of expected price fluctuations which may impact operations. Price trends are downloadable; click the buttons below to view.

United States

Key F&B Trends for August

Last updated August 7

Meat/Poultry:

• Ribeye: Pricing returned to seasonal norms after the 4th of July holiday and will remain that way with a gradual increase in anticipation of Labor Day

• Striploin: Pricing sharply decreased through June and July and are now hovering slightly above seasonal norms. As with other cuts, there will be a steady increase throughout August prior to Labor Day

• Tenderloin: Pricing in July trending 10% lower than year ago. Expected to readjust in the coming weeks to normalize versus year ago pricing trends before Labor day, but likely to fall to record lows afterwards

Pork:

• Hams: Price increases due to continued high retail and foodservice demand for whole and sliced hams. Some Hormel whole muscle hams (i.e. pit hams and natural juice hams) have limited inventory, buffet hams are more readily available

• Bacon: Prices are returning to normal August levels due to foodservice demand which continues to increase. Hormel has ample inventory on most bacon items and many of the GAH SKUs are now shipping fresh, not frozen

• Sausage: Supply has increased industry-wide leading to significant price decreases in August

Seafood:

• Farmed Salmon: Pricing is expected to remain stable or slightly up throughout the month; transportation challenges may impact pricing later in the month as demand potentially increases

• Wild Salmon: A sub-par season thus far; expect to see weaker supply as a result of poor landings; prices expected to climb throughout the month

• Lobster: Pricing has been down for several months; slight increases throughout the month expected as a result of the molting season

Produce:

• Green Peppers: Eastern supplies are improving, expect lower pricing through August

• Potatoes: Storage crop has all but run out and some suppliers may be out of product. Markets will recover later in August as new crop starts coming in

• Lettuce: Iceberg and Romaine supplies have still not recovered from the hot weather in June. Lower COVID-19 volume caused general reductions in plantings which contributed to slow recovery in supplies. Expect another 4-6 weeks of issues

Other F&B Products:

• Disposable Gloves: Due to high demand and constrained supply, glove prices have increased significantly, and we anticipate additional increases in September. To help mitigate costs:

  • Review all glove purchases and consider adjusting specifications where possible. To help ensure you are buying the right glove for the right application see the Avendra Disposable Glove Buying Guide. For example, consider purchasing general purpose gloves vs. exam grade gloves. Exam grade glove usage has increased approximately 2.5x compared to 2019

  • Consider some type of inventory control program to help reduce your need/demand.

• Aluminum Cans: Some bottlers’/markets’ supply may be impacted across different flavors (see full pricing information for more details)

Canada

Last Updated August 7

Beef:

• Beef market prices continue to stabilize, while demand for beef products remains soft

• The overall industry has returned to last years slaughter levels, Canadian production is now above volume from a year ago

• All facilities are now open in Canada & US

• Although prices have fallen, prices remain well above levels from a year ago. It is anticipated that Canadian beef prices will remain firmer than US market pricing

Poultry:

• Chicken remains favored choice over both beef and pork. Depending on the course of the virus, demand for chicken will remain high, especially chicken wings.

• Due to the quick return of beef and pork supply and market price stabilization, chicken production has dramatically reduced, relying heavily on import to support demand. As a result, poultry chicken market prices have begun to increase and expected to trend high until the end of September

• Demand for chicken is expected to remain strong; as foodservice reopens, retail demand and home delivery maintain growth

Pork:

• Pork market pricing has stabilized, and supply has returned to normal levels without any interruptions

• Demand is expected to remain strong with BBQ season ahead

• Added benefits include port export to China have stabilized and foreign exchange rates have also steadied

• USDA pork belly value pricing has increased and is expected to remain high for the first weeks of August

Mexico 

Last updated June 1

Pork:

• Mexican producers did not close plants. There is a surplus of domestic production

• Mexico is self-sufficient on pork domestic production

• There is small demand on imported products, just for specific programs such as “Kurobuta”

Beef:

• Mexican producers did not close plants. There is a surplus of domestic production

• It is expected that Mexican beef exports to the US will resume by second or third week of June

• The offer and consumption mix has shifted from imported goods to national products due to the Mexican peso devaluation versus the American dollar during the COVID-19 lockdown (+31.6% currency exchange impact)