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Kosher Food Prices Likely to Increase After Raid

Kosher meat, which is typically more expensive than regular beef and poultry, could see a steep increase in price this summer following the arrest of nearly half of the workforce at the country's largest kosher meat processor. Any price increase would not only affect Jews, but also Muslims who buy the meat because it meets halal guidelines, and those who buy it simply for health and safety reasons.

Kosher food prices have already skyrocketed over the course of the past year, and this would only add to the rising prices.

US Immigration & Customs Enforcement agents raid Agriprocessors Inc. in Iowa on May 12, arresting approximately 400 workers on immigration, identity theft, and other charges.

Agriprocessors makes half of the US's kosher beef, and 40% of the nation's kosher chicken. The plant was temporarily shut down due to the raid, but has since reopened. Nevertheless, any delay in the production of the meat will translate into higher prices. With less product on the shelves, and the demand persistent, prices will undoubtedly rise.

Even if the company is able to maintain production, prices are still likely to rise. Following the largest immigration raid in history, the Agriprocessor will now have to hire documented workers.

Joe Regenstein, a food sciences professor at Cornell University, said,

"I suspect prices will rise disproportionately as the real costs of production will have to get factored in. The particular competitive advantage of Agri is likely to be lost. If they end up in further trouble, there could be a shortage of (kosher) meat over the summer."

Over the past year, kosher meat prices have gone up between $2 to $3 per pound.

Comments

Re: Kosher Food Prices

The unions are driving cost up. All food prices have been going up (not to mention everything that goes with producing food). You can’t blame the company for that. Kosher foods are like organic foods in that they are specialty that certain people go out of their way to look out for. Right now I heard that AgriProcessors are up and running smoothly producing more meat for not only their customers, but also the flood victims of Iowa’s recent disaster.

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