Costco offers USDA Prime- but at what “cost”?
It finally happened………the coveted USDA Prime beef has hit club stores (at least it has hit Costco). What makes up less than 2% of our graded beef is being offered for the first time at the retail level. What’s the catch? Well, our economy is in the gutter, giving a current lag in demand of USDA Prime beef due to lower levels of restraunt patrons. Every week, it seems I read or see another restraunt that is closing its doors.
What is the real cost of availability to such a coveted grade of beef at Costco? And I don’t mean cost per pound. I’m talking long term, when the economy recovers. First, there are reports that our cattle herd is the smallest since 1973. If that’s true, and less than 2 % of beef is graded USDA Prime, than simple math tells us that there is less USDA Prime beef available today.
So here’s the catch…….. while the Cattleman’s Assoc is certainly enjoying this new outlet of USDA Prime in bigger markets, it just may backfire to the consumer. As demand goes up for USDA prime in these new outlets, a squeeze will be put on supply, and you can guess what will happen to the cost.
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