Chicken Poised to Make Gains

Higher Meat Prices Will Favor Chicken Over Beef

 

By Victoria G Myers, Progressive Farmer/DTN

5/9/2022

 

As retail meat prices continue to climb, consumers are likely to trade from beef to more poultry consumption as the year progresses. The main driver in the switch will be inflation and wages that aren't rising fast enough to keep pace with increased costs of living.

 

That comes from a new report by CoBank's lead economist on animal protein, Brian Earnest. He notes that demand for animal protein has remained high, especially for beef -- even as prices have climbed. But Earnest believes that as retail meat prices continue to go up, some shifts in buying behavior are likely. Chicken will be best positioned to take advantage of those shifts.

 

Earnest told DTN that a 15% across-the-board increase in retail meat prices was reported by USDA in March for the first quarter of 2022. For beef, that increase adds up to about $1 more per pound for the consumer; for chicken, it will amount to about 30 cents more per pound.

 

"The typical response out of poultry producers has been that if times are good, they expand. But they are conscious of the higher costs for inputs," said Earnest. He added he's been told poultry companies don't have the labor they need for plants.

 

MORE PRICE INCREASES COMING ...

 

HOME GRILLING ENTHUSIASM ...  

 

DEMAND HOLDING FOR BEEF ...

 

more

https://www.dtnpf.com/agriculture/web/ag/livestock/article/2022/05/09/higher-meat-prices-will-favor-beef