Great American Group Reports Rising Beef and Dairy Prices
- Smaller cattle herds keep beef prices high, while record corn crops lead to declining prices -
WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Analysts with Great American Group, Inc. (OTCBB: GAMR) report that beef and dairy prices are on the rise.
“Prices for dairy products, such as milk and cheese, are also increasing, owing in large part to higher demand from Asia.”
“Beef prices are rising due to a below average supply of cattle, resulting from the lingering effects of the drought,” noted Ken Bloore, Chief Operating Officer of Great American Group’s Advisory and Valuation Services division. “Prices for dairy products, such as milk and cheese, are also increasing, owing in large part to higher demand from Asia.”
However, the news is not all bad. Domestic farmers produced a record corn crop in 2013, causing corn prices to begin falling in mid-2013 – a trend that has continued into 2014. This surplus has the potential to result in lower prices for certain foods as the year progresses.
According to Great American Group’s newest quarterly Food Monitor, gross margins have remained stable for some companies and have decreased for others, depending on the inventory mix.
“Many of the companies that primarily sell beef and dairy products have experienced falling margins due to the rising prices and delay in passing along such increases to customers,” added Bloore.
Looking ahead, Great American Group predicts a moderate level of food price inflation through year-end, given current livestock inventories, weather trends and commodity prices. However, a reoccurrence of drought conditions or other severe weather events in key growing areas could result in significant increases in overall food prices.
For more information about food industry trends, download Great American Group’s latest quarterly Food Monitor, which is available on the company’s website at http://www.greatamerican.com/static/pdf/industry-insights/Food/Food%20Monitor%20February%202014.pdf.
For more information about asset disposition or advisory and valuation services available through Great American Group, visit www.greatamerican.com.
About Great American Group, Inc. (OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, Melville, N.Y., New York, Norwalk, Conn., San Francisco, London, Milan and Munich. For more information, call (818) 884-3737 or visit www.greatamerican.com.