{"id":2056394,"date":"2023-10-05T12:05:02","date_gmt":"2023-10-05T16:05:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/record-chicken-prices-squeeze-us-shoppers-benefit-tyson-foods\/"},"modified":"2023-10-05T12:06:40","modified_gmt":"2023-10-05T16:06:40","slug":"record-chicken-prices-squeeze-us-shoppers-benefit-tyson-foods","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/record-chicken-prices-squeeze-us-shoppers-benefit-tyson-foods\/","title":{"rendered":"High chicken prices burden US shoppers, favor Tyson Foods."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Frecord-chicken-prices-squeeze-us-shoppers-benefit-tyson-foods%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2056394&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p>By\u00a0Tom Polansek<\/p>\n<p>October 5, 2023 \u2064\u2013 3:40 \u2063AM PDT<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p><h2>Chicken Prices Reach Record Highs as Consumers Shift Preferences<\/h2>\n<\/p>\n<p>CHICAGO, Oct \u20635\u2063 (Reuters) \u2013 Chicken prices at U.S. grocery\u200d stores \u2064have hit record \u2062highs and are expected to remain elevated. This is due to Tyson Foods and\u2064 other companies reducing poultry \u2062production\u200b to increase profits, \u200bwhile inflation-weary shoppers opt for chicken over \u200dbeef and pork.<\/p>\n<p>While higher chicken prices may benefit top producers like \u200dTyson and Pilgrim&#8217;s Pride, consumers will feel the pinch as they try\u2063 to save money by turning away from higher-end proteins. Profit margins for chicken producers are currently at their highest in a year.<\/p>\n<p>According to data from the U.S. Department of Agriculture, \u200bU.S. \u200bconsumption of \u200bchicken is projected to exceed 100 pounds per person this year for the first time ever. On the other hand, beef consumption is expected to drop\u200b to its lowest level since 2018 due to rising prices caused by dwindling cattle supplies.<\/p>\n<p>Meanwhile, pork consumption has reached its lowest point\u2063 since 2015 as a result of consumer spending cuts.\u200d Tyson, which sells chicken, beef, and pork, faced a surplus of chicken after earning massive profits during\u2063 the COVID-19 pandemic when meat prices soared.<\/p>\n<p>To reduce costs, Tyson announced the closure of six U.S. chicken plants, affecting nearly \u200d4,700 employees. Analysts predict that \u2063Tyson&#8217;s chicken business likely\u2063 returned \u200cto profitability in the\u2064 quarter ended Sept. 30 after two\u2062 quarters \u200dof operating losses.<\/p>\n<p>Tightening supplies are now benefiting \u2062producers&#8217; bottom lines. U.S. facilities that hatch chicken \u2064eggs placed \u200babout 2.8% fewer eggs in incubators in\u200c the six weeks ending on Sept. 23 \u2062compared to the previous year. This is a significant turnaround from the same period \u2064in 2022 when hatcheries set 3.6% more eggs in incubators.<\/p>\n<p>Chicken producers also placed about 2.7% fewer\u2063 chicks for meat production \u200cover \u200cthe same six-week period, compared to a year earlier \u200bwhen there was a 4.5% \u2064increase.<\/p>\n<p>According to U.S. data, cumulative placements for 2023 dropped below last year&#8217;s levels \u200baround the end of May.<\/p>\n<p>&#8220;They cut back,&#8221; said\u200c Bob Brown, an independent livestock market analyst. &#8220;That \u200cseems to have buoyed the chicken market.&#8221;<\/p>\n<p>An index maintained by Brown, which reflects profitability \u2064for poultry producers, shows that chicken prices and feed prices reached their highest level\u2062 in more than a year in September. Declining feed\u2062 costs have\u200b helped producers improve margins, especially with corn prices near their lowest point in three \u200dyears.<\/p>\n<p>Chicken companies \u2062have also sought to\u2064 limit the weights \u2064of \u2064birds this summer as\u200d part of their efforts to reduce production and restore profitability. Lighter birds produce less meat for \u2062consumers.<\/p>\n<p>In August, retail prices for whole fresh chickens and bone-in legs reached \u200dnominal records, according to\u200b the latest monthly U.S. Department of\u200b Agriculture data. Drumstick prices\u2062 have climbed 10% from a \u2064nearly one-year low reached in February, and wholesale prices have also rebounded.<\/p>\n<p>Although the U.S.\u200d government \u200dhas trimmed its\u200b estimate for \u200d2023 chicken production from August, production is still expected to surpass 2022. \u2064Producers have taken steps to reduce \u200dplacements after experiencing a \u200csurplus of chicken supplies last year.<\/p>\n<p>Improved U.S. demand is\u2063 now helping to reduce excess supplies, according to analysts.\u200b They forecast positive margins\u2064 for Tyson&#8217;s chicken business in\u2064 the quarter ended Sept. 30 and anticipate \u200dfurther improvement in the future.<\/p>\n<p>Despite \u2063ongoing challenges and large supplies\u2064 in freezers, consumers are still choosing chicken due \u2062to tighter beef supplies caused by reduced herds during three years of drought in the Great \u200bPlains.<\/p>\n<p>Reporting by Tom Polansek; Editing by Caroline Stauffer and David Gregorio<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Congressman Matt\u2064 Rosendale\u2062 explains his decision\u200d to vote for the removal of speaker Kevin \u200dMcCarthy. One America\u2019s John Hines has more\u2064 from Capitol \u2062Hill.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>One America\u2019s Jessamyn Dodd and\u00a0California congressional candidate Christine Bish discuss disability legislation and the Fentanyl crisis.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Jim\u2063 Jordan emerges as a potential candidate for the next House Speaker, while \u2062Donald \u2063Trump makes an appeal in his New York Civil Case.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The world is closely watching the U.S. political turmoil, witnessing \u2062historic events: The first-ever \u200bremoval of a House Speaker, with 8 Republicans \u2062joining Democrats to\u200b make it happen. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Meta is \u2062planning \u2063to lay off employees on\u200d Wednesday in the unit of its metaverse-oriented Reality Labs division focused\u200c on creating custom silicon<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Sam Bankman-Fried\u2019s fraud trial got under way with jury selection on Tuesday, nearly a year\u2062 after his now-bankrupt cryptocurrency exchange\u2019s\u00a0collapse.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-crypto-market-bears-the-scars-of-ftxs-collapse\/\" title=\"FTX's collapse left lasting scars on the crypto market.\">global cryptocurrency market remains badly scarred<\/a> following the tumultuous collapse of crypto exchange FTX and other big players last year<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>A California federal judge has ruled people who own\u2062 Tesla cars must pursue autopilot claims in individual arbitration rather than court.<\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> How have major producers like \u2064Tyson and Pilgrim&#8217;s Pride benefited from the increase in chicken prices, and how are consumers being affected<\/h2>\n<p><span>  Hicken prices reaching record highs in the United \u200dStates \u2063as consumer preferences shift towards poultry over beef and pork. This\u2062 trend is \u200dlargely driven by Tyson Foods and other\u2063 companies reducing poultry production to increase profits, while\u200c consumers, wary of \u2063rising inflation, opt\u200d for more affordable chicken.<\/p>\n<p>The increase in chicken prices may benefit major producers like Tyson and Pilgrim&#8217;s Pride, as profit margins for chicken producers are currently at their highest in a year. However, consumers will feel the pinch \u2064as they try to save money by turning\u200c away from higher-end proteins.<\/p>\n<p>Data from the U.S. Department \u2063of Agriculture reveals that U.S. chicken consumption is\u200c projected to exceed 100 pounds per person this year, a record high. Conversely, beef consumption is expected to drop to its lowest level since 2018 due to rising prices caused \u200dby dwindling cattle supplies. Additionally, pork consumption has reached its lowest point since 2015 due to consumer\u200b spending cuts.<\/p>\n<p>Tyson, which sells chicken, beef, and pork, faced a\u200b surplus of chicken after earning massive profits during the COVID-19 pandemic when meat prices soared. To reduce costs, Tyson announced the closure of six U.S. chicken plants, impacting \u2062nearly 4,700 employees. Analysts predict \u2063that Tyson&#8217;s chicken business likely returned to profitability in the\u2062 quarter ended Sept. 30 after two quarters of operating \u200dlosses.<\/p>\n<p>The tightening supplies of chicken are now benefiting producers&#8217; bottom lines. U.S. facilities\u200c that \u2063hatch\u2063 chicken eggs placed about 2.8% fewer eggs in incubators in the six weeks ending on Sept. 23 compared to the previous year. This marks a significant turnaround\u2063 from the same period in \u200c2022 when hatcheries \u2064set 3.6% more eggs in incubators. Furthermore, chicken producers placed about 2.7% fewer chicks for meat production over the same six-week period, compared to a year earlier when there was a 4.5% increase.<\/p>\n<p>Cumulative placements for 2023 have dropped below last \u2063year&#8217;s levels around the end of May, indicating producers&#8217; efforts to reduce production and restore profitability. The chicken market has been\u200b buoyed by these cutbacks, as indicated by\u2064 an index maintained by Bob Brown, an independent livestock market analyst. The index reflects profitability for poultry producers \u2062and shows that chicken prices \u200band feed prices reached their highest level in more than a year in September. Declining feed\u200c costs have helped producers improve margins, especially with corn prices near their lowest point in three years.<\/p>\n<p>Chicken companies have also sought to limit the weights of birds this summer as part of their efforts to reduce production and restore profitability.\u2062 By producing lighter birds, there is less \u2064meat for consumers, enabling producers to control\u200d supply. In August, retail prices for whole fresh chickens and bone-in legs reached nominal records, and drumstick prices have\u2062 climbed 10% since February.<\/p>\n<p>Although the U.S. government has trimmed its \u200bestimate for chicken production in 2023\u2062 from August, production is still expected to surpass 2022 levels. Producers have taken\u2062 steps to reduce placements after experiencing a surplus of chicken supplies last year. Analysts forecast\u200d positive margins for Tyson&#8217;s\u2064 chicken business in the quarter\u2062 ended Sept.\u200d 30 and anticipate further improvement in the future, as improved U.S. <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/record-chicken-prices-squeeze-us-shoppers-benefit-tyson-foods\/\" title=\"High chicken prices burden US shoppers, favor Tyson Foods.\">demand helps reduce excess \u2063supplies<\/a>.<\/p>\n<p>In conclusion, chicken \u200cprices have reached record highs in the United States due \u200cto reduced poultry production and shifting consumer preferences. While this benefits top producers,\u200d consumers are feeling\u2064 the pinch as \u2063they turn to more affordable protein options. The tightening supplies and efforts to reduce production\u2064 have \u2062improved profit margins\u200d for chicken producers, but consumers may continue to face elevated prices until supply and demand find equilibrium.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chicken prices in U.S. grocery stores have reached record highs due to reduced poultry production by companies like Tyson Foods. Inflation-wary shoppers are opting for chicken over beef and pork, ensuring that prices will remain elevated.<\/p>\n","protected":false},"author":1911,"featured_media":2056395,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2056394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2056394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2056394"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2056394\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2056395"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2056394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2056394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2056394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}