Inflation-pressured consumers are cutting back on pork loins, bacon and hams. Executives at top pork processors Smithfield Foods and JBS said Tuesday that demand for pork is weaker than for chicken and beef. Smithfield's fresh pork sales volumes were down 2% in its second quarter compared with a year ago, and it cut its forecast for annual sales. Smithfield shares fell about 3%.

"Gas prices have moved up again and household budgets certainly remain tight," said Steve France, head of Smithfield's packaged meats division. The company said it was working on new offerings for consumers, such as pre-cooked deli meat lunches and a portable nacho kit. Restaurants, meanwhile, are adding pork in response to rising beef costs. Smithfield executives said fresh pork sales to restaurants increased 12% during the quarter.