As Americans get ready to gorge on Thanksgiving turkey, some bad news for the makers of meat in this country — earnings at the biggest companies are down, which could mean higher prices for consumers.
Although we as a country are eating less meat during tough economic times, says the Wall Street Journal (via Gawker), those tough times are affecting familiar grocery store meat labels like Tyson and Hormel, who are posting lower earnings.
Says the WSJ:
Profit margins at Hormel are expected to face pressure from higher feed costs in the company’s Jennie-O turkey business, as well as higher costs to produce ham, bacon and items such as cheese-and-pepperoni party trays.
We all know what higher costs and lower earnings for the companies supplying a product means! Higher prices for consumers at the checkout. Suddenly, getting a ham on layaway is starting to make more sense.
Meat Producers Seek a Supply Balance [Wall Street Journal]