Challenges for Chickens It’s not easy being in the chicken business these days. The chart below shows our estimated gross feeding margin for broiler companies since the beginning of 2019.
First, there’s been a glut of protein on the market. Second, exporting has been a challenge. Third, the domestic market is shifting away from what the industry has been building infrastructure for over the years – big bird deboning. Wholesale breast meat prices averaged $1.07/pound the first quarter of 2019; last week they were about $0.91/pound and have spent about half of 2020 so far under $0.90/lb. Weak prices early this year have been counter seasonal. Meanwhile, production is up. Low feed costs and the opening of the...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
