Chicken is poised for a comeback.

The chicken industry is finally reporting good news after the recession caused widespread problems. Everything from high feed prices to a decrease in demand led to cutbacks, but now that demand is picking up, feed costs are down, and the stock is still low, the increased price of chicken is helping some industry giants dig out of last year's hole.

Reuters has more on Sanderson Farms, who reported a profit gain, and is also building a new plant in North Carolina:

"Grain prices have come down over recent weeks in reaction to the USDA's January crop estimates, and we believe our feed costs for fiscal 2010 will remain below last year's levels," Sanderson Chief Executive Officer Joe Sanderson said in a statement.

Meanwhile, Tyson (via Business Week) execs expanded on how the decreased supply will lead to larger profits:

Chief Operating Officer Jim Lochner and Chief Financial Officer Dennis Leatherby told investors at a conference that Tyson has improved its chicken business over the past year, as the U.S. supply of meats --chicken, beef, pork and turkey -- has declined.

The smaller supply should help Tyson.

"Most livestock and poultry producers lost money in '08 and '09, which led to cutbacks in the herds and flocks and less protein available in the marketplace," Lochner said in a statement.

The company said that for the first time in 40 years, industry watchers predict a second consecutive yearly drop in the amount of available meats. The reduced supply should mean higher prices for meat, Tyson said.

And the executives said they believe the company is poised to take advantage as demand returns.

While there is concern about the issue with Russia and China's trade situations, it would seem that the worst is over for the chicken industry.