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Agent’s Note: Here is a release on consumer education by Don Long of the agricultural economics department at Virginia Polytechnic Institute.
Retail meat prices do change with changes in farm prices. They don’t change as much percentage-wise; they don’t change as fast; they don’t change evenly on all cuts. Knowing the *whys” of these differences and how to take advantage of them can mean dollars and cents in meat shopping. It’s rather obvious that retail prices will have a different percentage change than will farm prices. A 2 cent change from 20 cents on a farm animal is 10 percent; a 2 cent change on a 50 cent carcass at retail would be 4 percent. The percentage change is different. A 2 cent difference on a farm animal looks bigger than a 2 or more cent change at retail. Then, too, farm prices are more volatile. They change
93.2%