Food Industry Input Costs Rise Amid Beef Price Surge and Input Inflation

This week’s FIE Input Cost Index rose from 139 to 142, reflecting rising costs across the food industry. Grain prices saw a slight decline, with corn dropping to $4.97 per bushel after the USDA reported old-crop corn supplies were 35% higher than last year. Despite this, the harvest remains behind schedule, with only 23% of corn harvested compared to the average 27%.

Boxed beef prices climbed to $379.38 per hundredweight, marking the second consecutive weekly increase. This surge followed immigration enforcement at Kansas packing plants, which reduced fed slaughter by 16% on September 24. These plants are critical, handling over 20% of the U.S. fed-cattle capacity.

Input inflation continues to be a significant factor, with the ISM Manufacturing Prices Index jumping 6.8 points to 77.9, nearing levels last seen in March. Respondents pointed to rising costs of steel, aluminum, tariffs, and petroleum-based products. Raw material prices have now increased for 24 straight months.