CHICAGO - The demand for more ethanol has caused feed costs to soar, resulting in farmers downsizing hog and cattle herds. Because of that, U.S. meat prices will probably reach record highs this summer, Bloomberg News reports.

This month, wholesale pork prices leaped 25 percent to 90.68 cents last week, according to U.S. Department of Agriculture (USDA) data. Beef jumped 22 percent this year to reach $1.69 per pound last week, the highest price since July 2008. In March, chicken gained the most in 20 months.

With the improving economy, grilling season resuming, and Russia and China letting in more U.S. imports, demand for chicken breasts, pork chops and steaks is growing. However, domestic meat supplies could fall to a 13-year low because of high corn prices, which caused ranchers to trim herds.

"Ethanol-induced prices in meat are just now getting to the marketplace," said Steve Meyer, the president of Paragon Economics. "Consumers are going to see the highest prices they??ve ever paid in meat and poultry because of the decisions made to make corn into ethanol."

Ethanol producers point to "wild speculation in the markets and the surge of index funds" and not an increase in corn use for fuel as the reason for higher meat prices, said Chris Thorne, a spokesman for Growth Energy.

Experts predict retail prices could reach record levels during the next three months with the summer grilling season. Meat prices rose 5 percent this year, while food costs dropped 5.8 percent.

However, grocery stores have not been passing along those costs to consumers, said Meyer. Last month, retail beef on average experienced little change from the pervious year.