US Chicken Supply Expected to Increase

The USDA has revised its forecast for US chicken production, expecting a 1.6% increase this year, which may lead to lower retail prices for chicken products. This marks an improvement from earlier projections of a smaller increase in production.

Sources (2)

Open Article

9/14/2024

[0]zerohedge.com

Attention Consumers: US Chicken Supplies Growing Quicker-Than-Expected As Prices Slide

9/12/2024

[1]Bloomberg.com

Chicken Supply in US Seen Growing at Faster-Than-Expected Pace

Score	Value
Scale	7
Novelty	4
Positivity	5
Reliability	8
Actionability	6
Society	4
Journalism	3

Highlights

The USDA forecasts US domestic broiler production to reach 47.1 billion pounds in 2023, a 1.6% increase from the previous year.
The USDA's previous forecast in July estimated a 0.8% increase in chicken production.
The number of eggs hatched in the US has risen by more than three percentage points since early July.
The number of chicks placed for production has reached the highest seasonal level in two years.
Retail prices for chicken are expected to decrease due to the growing supply.

Perspectives

The increase in chicken supply is seen as beneficial for consumers, potentially leading to lower prices and encouraging a shift from beef to chicken due to rising beef prices. Analysts suggest that this trend could help cash-strapped consumers save money on groceries. [1][2]
While consumers may benefit from lower prices, the increase in chicken supply has negatively impacted producer stocks, with major companies like Pilgrim's Pride and Tyson Foods experiencing declines in share prices. This situation highlights the challenges faced by producers amid changing market dynamics. [1]