020711 Low Meat Prices Add Sizzle to Holiday

Chicago - At Jacqueline Thompson's Independence Day party, pork ribs, hamburgers and hot dogs will be competing for space on three busy grills.

In a surge of renewed patriotism, the Chicago waitress, like many other Americans, plans an unusually large cookout this year, and is taking advantage of the low meat prices.

The Fourth of July has always been a major holiday for meat sales, and this year the parties may be even more lavish as hosts may feel more compelled, after the traumatic attacks of Sept. 11, to celebrate this country's birthday.

That is good news for the meat industry, which needs strong sales of steaks, pork ribs, chicken, and other items to pare this year's huge meat supply.

For Thompson and other holiday entertainers the large supply translates into lower prices.

"I think prices are cheaper," said Thompson, who expects to spend $300 on food for this year's party. "I will get more meat this year for my money than I did last year."

While supermarkets are generally reluctant to change base meat prices, they will offer one-time holiday specials.

In Chicago, Thompson can find holiday specials such as 16-ounce packages of hot dogs for 99 cents and 2-for-1 deals on chicken breasts, pork ribs, and beef rib-eye steaks.

"In the case of beef, those (deals) will be plenty attractive," said Kevin Bost, meat analyst with Topco Associates, a food cooperative that serves about 2,000 supermarkets nationwide. "We have several of our members that are running loss leaders."

For many Americans on the Fourth of July, cookouts with friends and family are a tradition -- as they are on the two other major summer holidays, Memorial Day and Labor Day.

"We will probably eat about 25% more beef on those days than we do on an average day, " said Chuck Lambert, chief economist for the National Cattlemen's Beef Association, the nation's largest cattle group.

In the Chicago suburb of Crystal Lake, Illinois, Rich Persino will be serving about 50 pounds of hamburgers and 20 pounds of hot dogs to about 90 guests.

"We are going to have a huge celebration, especially since Sept. 11," said Persino. "We are having a bigger one (party) than usual."

PRODUCTION UP, EXPORTS DOWN

This year's large meat supplies developed because production of beef, pork and chicken is up. Beef production in June may have been the second- or third-largest ever for that month, said Lambert.

Pork production in late June was up 10% from a year ago and chicken production should be up 3% this year, industry sources said.

Also, a drop in beef exports to Japan and a drop in chicken exports to Russia have put more meat in domestic markets than had been expected. As a result, wholesale meat prices are down, which should encourage supermarket specials.

In May, retail beef prices were down about 3% from a year ago and should be down a similar amount in June, said Lambert.

The pork industry has launched newspaper and radio ads promoting pork ribs for Fourth of July meals.

The chicken industry reports dark-meat leg quarters are in abundance and priced low. And, a drop in exports of the leg quarters to Russia has made more available for supermarkets.

A five-pound package of leg quarters are being advertised at 39 cents a pound, versus the normal prices of 59 to 69 cents, said Richard Lobb, spokesman for the National Chicken Council.

"They are really excellent for grilling," he said.

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