Record Chicken Prices Squeeze US Shoppers, Benefit Tyson Foods

[ruet]

Last edited Thu Oct 5, 2023, 01:46 PM - Edit history (1)

Source: Reuters

Chicken prices at U.S. grocery stores have hit record highs and should stay elevated as Tyson Foods and other companies dial back poultry production to boost margins while inflation-weary shoppers buy chicken instead of beef and pork.

Higher chicken prices should improve earnings at top producers Tyson (TSN.N) and Pilgrim's Pride (PPC.O), but will pinch consumers' pockets as they try to save money by turning away from higher-end proteins. One index shows chicken producer profit margins at their highest in a year.

U.S. consumption of chicken is expected to exceed 100 pounds per person this year for the first time ever, data from the U.S. Department of Agriculture shows.

Beef consumption is forecast to drop to its lowest since 2018, as prices climb due to dwindling cattle supplies. Meanwhile, consumer spending cuts have knocked pork consumption to the lowest since 2015.

Read more: https://www.reuters.com/business/retail-consumer/record-chicken-prices-squeeze-us-shoppers-benefit-tyson-foods-2023-10-05/

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Someone tell me about this whole "supply and demand" thing. Dead-end Capitalism strikes again.

[twodogsbarking]

1. The Saudis of fowl.

[Grins]

2. The "invisible hand of the free market" strikes again!

"...Tyson Foods and other companies dial back poultry production to boost margins.."

How is this any different from OPEC? Or Big Pharma...?

[Magoo48]

3. So, stop eating the steroid-buffed little beasties.

Much greater health benefits come from watching a group of the yardbirds work over some property than by eating them.

[Backseat Driver]

8. I try to support and know the growing philosophies of my "local" farmers/sellers.

insofar as use of medications, treatment, use of trusted private abbettoirs, and fair pricing. I do pay a bit more but these farmers and their local abuse-free methods of which I approve for tastier, healthier human consumption and less cruel husbandry seem worth it for me and my family. The owners of the property on which I live as a tenant don't seem to be at all concerned about the edible domestic waterfowl who were dumped here by unknown persons...This puts the domestic duck breeds and hybrids who cannot fly away in abject danger of possible disease (avian flu, botulism species, e-coli made worse by visiting wild species, conditions of climate change, and pollution, and unrestrained domestic and wild predator species that include humans drivers in vehicles including contractors in mowers or with power tools, unsupervised children, and others, willingly ignorant of adequate knowlege or access, even on-line, to avian veternarians? The ducks do what comes naturally, reproduce, though so unprotected from the Circle of (free, unprotected) Life. Am I selfish in making sure their diets are augmented as we enjoy their presence on what must represent some type of owner-easement to absentee city government storm water management. Our property managers seem to desire some healthy conservation measures like use of an aerator and pet-friendly insecticides and fertilizers/herbicides; I'm quite sure that new lease prices reflect unit location on the property to some extent - even going so far as to considering the area a view-worthy amenity. These ducks give most great joy and health benefits as a spot of leisure repose and family fun, but to be sure, also health deficits, to hobby enthusiasts on a property that far exceeds coded size (acreage) criteria in residential suburbia.

[Magoo48]

10. Thank you for the insight, Backseat Driver.

[keithbvadu2]

4. The supply/demand chart still works but they are artificially shifting the lines 'for margins'.

[mahatmakanejeeves]

5. The price is still $1.99 per pound for boneless, skinless chicken breasts at the Giant.

https://giantfood.com/savings/weekly-ad/print-view

Reuters must have edited the headline. It now reads "Record chicken prices squeeze US shoppers, benefit Tyson Foods."

[JT45242]

6. Tyson and OTHER COMPANIES

According to https://www.wattagnet.com/top-poultry-companies the top 8 chicken producers in the world are really just 3 companies total: JBS centered in Brazil, Tyson, and Cargill

Company Country Head slaughtered annually (in millions)
JBS S.A. Brazil 4436
Seara (also JBS) Brazil 2044
Tyson Foods Inc. United States 1980
Tyson Foods (broiler) United States 1882
BRF (also JBS) Brazil 1670
Pilgrim's Pride Corp. (also JBS) United States 1500
Wen's Food Group China 1081
Wayne Sanderson (owned by Cargill) US 1076


Basically, 3 companies have a monopoly on the chicken's sold outside of China. And one of them (Cargill) can manipulate feed prices.

Oligarchs and monopolies operating with unregulated greed.

[revmclaren]

7. My diet is comprised of mostly vegetables with a bit of meat....chicken being my chosen

protein.

Prices haven't hit me particularly hard yet.

[highplainsdem]

9. Infuriating.

[Old Crank]

11. Here in Munich

Our meat tends to be pricier than in the US. Whole chicken here is closer to the rotiserie size at most super markets when I left 8 years ago. in the 3-3.5 lb range. About $8 for the whole bird. Cuts are normally more. I normaly buy whole legs, which are cheaper. A whole chicken comes out to about 4 servings roasted for us.
Ground beef is around $5 per half kilo. So about $4 per pound. I normaly buy a pork/beef mix which is cheaper.

I try to buy locally sourced meets and food items.
The big exception is blueberries which come from everywhere depending on the season. Price doesn't seem to be affected buy the point of origin. I pay about the same for Polish blueberries as one from Morroco or Chile... go figure.

[aggiesal]

12. This reminds me of the Eggs shorted earlier this year ...

They held back production to create the shortage and raise the prices.
Then the following quarter, they reported record profits.
Immediately after announcing record profits, the price of eggs returned to normal.

It's all a scam.

[Marthe48]

13. Price of chicken hasn't come down from the bird flu

Food and housing should be taken out of the bottom line squeeze immediately. If the greedy people in corporations don't give a damn about human suffering, they should stop being allowed to profit from it. Right now.

[llmart]

14. So glad I don't eat meat.

[appleannie1]

15. Thighs & drums are only .99 a pound and breast 1.29 here. I just stocked up on chicken since it is

so low.

[Demsrule86]

17. I have chicken breasts that were marked down. I have freezer and buy in bulk when this happens.

I refuse to be fucked with by greedy food companies.

[appleannie1]

18. Here too. Last year I started buying turkey backs, necks and wings and making

soup stocks with that instead of beef. And I started NON GMO seeds in Feb. and my son built me 5' long wooden boxes on legs making them waist high for me to plant a garden in. I now have a composter and nothing goes to waste. I have enough frozen tomatoes, peppers, carrots etc. to last until spring. Next year the only thing I will have to buy is some seeds. I buy meats on sale only.

[Demsrule86]

19. Great idea...I got turkeys too after Thanksgiving for 5 cents a pound... I was like in March

or April. But they were frozen. my best deal lately was Laura's beef 96% fat free...comes in a wrapped 12 oz container which is usually 7.99 which I won't pay. The meat guy who dropped hints to me said they were not selling I bought all that was left. I also buy pork Tenderloin on clearance. I have beef roast when they are buy one and get one free...steaks are always marked down so with careful shopping I don't pay any more now than before. We eat salads and veg and fruit too.

[DBoon]

16. Didn't we used to have anti-trust laws to prevent monopolies and price-fixing?