Bloomberg has a visual look at how the economy is affecting meat sales. Since Lehman Brothers fell in September of 2008, chicken prices have gone from a low in November to be the highest selling product so far this year. Chicken has even passed sales of pork products, and is the only product to actually rise in sales since the start of the year.
“We’re seeing more shifts in the meat category to cheaper meats -- ground beef and chicken -- than we saw earlier in the year,” said Safeway Chairman Steven Burd. There is “a trading down virtually across the board” in retail and even “non- retail” products, he said during the Pleasanton, California- based company’s earnings teleconference on Feb. 26.Collaborating this story, Sanderson Farms, who posted a first quarter loss last Thursday, now says they are back in the black (via Reuters):
"Based on the current markets and where we think they will be when we sell those live chickens they will be sold at a positive operating margin," said Mike Cockrell, Sanderson's chief financial officer.It isn't all goo news for the poultry industry. Pilgrim's Pride announced the closing of three processing plants. The closings will leave about 1300 employees out of work, and 430 independent contractors will be impacted. The Shreveport Times called the decision, that will help Pilgrims Pride save $110 million annually, a "bombshell":
"This is our largest employer of low- to medium-skilled workers. In our area, there aren't a lot of good alternative opportunities for them and they don't have as many resources to leave the area for opportunity as did the workers at those other companies."
The closures also likely will impact surrounding parishes including Morehouse, which still is reeling from the loss of 550 jobs when International Paper closed its mill in Bastrop, the parish seat.Other Chicken News:
The Seattle Times on a chicken recall.
Salem, Oregon residents are asking law makers to allow backyard chickens.
Pilgrim's Pride names new executive vice president of marketing.
