If you’re looking to avoid inflation’s pinch, forget ham and turkey this Christmas. Instead, reach for the ribs.
Turkey has been hit by the worst bird flu outbreak ever, limiting supply and sending prices soaring during the year-end holidays. This has also helped to drive up the price of ham, the other traditional holiday protein, as shoppers look for alternatives. Meanwhile, cuts of pork that don’t require as much processing, such as ribs, have seen plentiful supply and falling prices. Chicken prices, while higher in recent years, have also started to cool off.
Businesses such as Baldor Specialty Foods are preparing for sticker shock. The supplier for restaurants and grocery stores is for the first time promoting whole chickens to customers for holiday meals, in part because it says ham prices have jumped 15% from a year earlier. It’s also advertising a 10-bone pork rack as a less-expensive option.
“We’ve tried to get creative in terms of what we can offer that’s a lower price per pound,” said Kevin Lindgren, Baldor’s director of merchandising. “The processing and the product has just gotten significantly more expensive,” he added, noting that spiral hams require additional labor to smoke, cure and slice. “Especially since August, we’ve seen it pick up pretty significantly.”
Ham prices rose in November for a fourth consecutive month, jumping 7.8% from a year earlier, according to data released Tuesday from the U.S. Labor Department. Prices for the poultry category that includes turkey surged nearly 18%. The most recent increases come on top of higher protein costs across the board during the pandemic, as high feed costs and labor shortages throughout the supply chain drive up prices. And while core inflation is slowing, food inflation seems to be sticking around
U.S. Foods Holding Corp., a restaurant supplier, said limited capacity and economic challenges have caused higher ham prices. In an email, the Rosemont, Illinois-based company said it’s providing “cost-appropriate alternatives” for its customers and is working “very closely with our suppliers and operators to mitigate cost increases and ensure supply.”
At Famous Dave’s, a barbecue chain with about 120 locations across the U.S., ham costs are up about 25% from last year. The company offers holiday meals such as whole hickory-smoked turkeys and double-smoked hams, costing $89 on their own or $159 as a package that includes mashed potatoes, mac and cheese, and corn-bread muffins. The company says prices are about 20% higher than last year.
Consumers “are feeling the impact” of inflation when shopping, said Al Hank, co-chief operating officer of BBQ Holdings, the chain’s parent company. He predicted some will trade down on meals for the winter holidays. “Maybe they don’t decide to get the full package,” he said. “They’re going to supplement, and make their own mashed potatoes.”
For its entrees, Famous Dave’s is introducing less-meat-heavy items such as grilled-cheese sandwiches at some locations. The goal is to help make up for lost margins from higher protein costs, while keeping menu prices reasonable for diners.
Low supply is also contributing to higher prices. Ham inventories in U.S. cold storage facilities were in October at their lowest level for that month since 2006. And pork production is also down 3.2% in the year through Dec. 10, according to the U.S. Department of Agriculture.