There’s a Bacon Surplus Because of Restaurant Closings
Last week, we brought you the news that there's a chicken wing surplus because of restaurants being closed. This week, it turns out not only is there a surplus of bacon, but hog prices are at their lowest in two decades.
Because so many restaurants are closed, the demand for pork belly is down significantly. The restaurant industry accounts for two-thirds of pork bellies purchased, so demand is down, meaning price is down, about $42 per animal to be precise.
"Demand for the belly really dropped," says Lori Stevermer, a hog farmer.
Even as far as next year goes, it looks like they're going to be losing about $25 per head when It comes time to sell.
Because less buying is happening, the stockpiles just keep growing. Companies are trying to pivot from selling 20-30 pound packages of bacon to 12-ounce packages for the grocery store.
While there's a pork surplus, there's a labor deficit due to regulations put in place to battle COVID-19, so it's a difficult process.
Read more at Star Tribune