Gary North

May 10, 2008

I realize that you don't implement every tip. You had better implement this one . . . unless you're a vegetarian.

The rise in the price of grain is creating massive losses for the livestock industry. Ranchers are selling their beef at a loss. The same with poultry.

The demand for meat is not going to fall next fall. But the supply of meat is going to be lower than normal.

We know what is going to happen. Meat prices will rise.

If you own a freezer, go out and buy whatever meat you think you will eat later in the year through next spring. Fill as much of that freezer as you can afford. Take out any food that probably will not rise, such as vegetables.

It is going to be a bad year for restaurants. I had lunch in a local Bar-B-Que restaurant last week. It had this on the menu: "Prices may change due to rising meat prices." I have never seen this before relating to beef or pork. Seasonal fish, yes.

The notice was printed on the menu. It was not a photocopied sheet of paper attached to the menu. This restaurant is preparing its regular customers for what is going to hit next fall.

If you can get a good deal on a side of beef because a local rancher is selling at a loss, take advantage of the situation. Or call a local butcher shop that sells larger quantities of meat wrapped in paper, not cellophane. Negotiate a deal.

The average American doesn't see what's coming. He doesn't have cash to buy this far ahead in bulk. That's why deals are available now.