Chicken Market Update- Week of 5/28

· We are continuing the poultry roller coaster…………I think I just lost my cookies!

· Getting right to the point…..it sucks! Mainly white meat is in bad shape for this week ship, bnls breast and tenders are leading the charge.

· Tenders are just feeling the heat, but breast meat is just downright nasty. Lack of business and further processing needs are just not there.

· The Memorial Day holiday has messed up further processing because of the long weekend, and lack of any retail volume means a very sick market.

· Most charts from last few years shows the same trend, I guess we just forget year to year, that we see a pull back. This pull back was hard and fast. It should correct some next week, but the formal market on breast meat should go down a few more times this week.

· Wings are still in great shape, an unusual time of the year, but wings too should slow down soon.

· Dark meat is in decent shape, except leg meat. Leg meat is struggling and should… sooner or later effect thigh meat, but we haven’t seen it yet.

· Fresh thigh meat sales are still good.

· On breast meat market : I think this will be the case..EXCEPT we will not see the August and September run up like in 2010, that was an bird weight problem with Tyson,

· I think we should flat line around $1.60 market after a Memorial Day sell off near the $1.50 range, but this is all speculation of course.

Painted Hills Is part of Portland's Best Burger

Kenny & Zuke's Co Owner Nick Zukin recently set out on a challenge to try all of Portland's burgers and rate them. He tried over 70 over three months and is blogging about his ratings over at his blog, ExtraMSG. Willamette Weekly recently did a feature on Nick's findings, and Painted Hills Beef helped to create Nick's top burger!

Via Willamette Week:

Metrovino’s double cheeseburger gives In-N-Out’s double-double animal-style an extreme makeover. You’ll wish you had the gaping jaw of a python for this sucker. Yes, it’s that big. Aside from the size, it seems like a typical burger. That’s what makes this No. 1. For such a straightforward approach, the results are spectacular: beefy and ultra-juicy with pungent cheese and a palate-puckering sauce. Perfection on a bun.

Bun: BridgePort Brewpub bakery when tasted (changed to using housemade sesame-seeded bun last week).
Meat: Painted Hills chuck plus ribeye trimmings, ground in-house, 12 oz. (two 6 oz. patties), 20 percent fat.

Where are people eating during these hard economic times?

Sure, Hormel is doing great in a tough economy, but where (if anywhere) are people eating when they go out? Are people still eating out at all?

In Oregon, particularly Portland, consumers are passing on the high end "foodie" paradises that were once opening by the dozen. Oregon Live reports that it is now the franchise that is the new king:

Although high-end restaurants have been hit hard recently --at least 25 closed last year in Portland --fast food is another matter.

Five Guys Burgers and Fries has exceeded revenue projections every month since opening in October in Beaverton. Franchise co-owner Ron Marble plans to open four franchises this year.

The Daily Herald writes that it isn't that people have stopped dining out, but it is how people have changed their dining out habits that is hurting the sit-down restaurant and favoring the fast food experience. One person interviewed spoke of ordering food to go to cut tip and beverage costs. He also says that if they do dine in, they drink water or split an entree:

That's a trend restaurateurs are seeing - those who dine in are skipping extras like appetizers and dessert, splitting main courses and saving money on drinks by passing on soda and alcohol. People who might have ordered a $60 bottle of wine are now ordering a $30 bottle. That, of course, lowers the amount of the bill - and the tips for the waitstaff.

A tactic some restaurant owners are using to lure in customers are coupons. Places like The Ram Brewery and the Blue Sage Cafe offered 2-for1 coupons in January. TheNewsTribune.com interviewed the owner of the Billy McHale's in Federal Way, WA, who also started offering coupons after the harsh winter snow hurt sales:

“I’ve been averaging 20 of these coupons a day,” he said. “The people who aren’t going to pay for an expensive meal are trading down to comfort food. We’re a family restaurant, and it’s tough for families right now.”

His store offers an extended happy hour, from 3 to 7 p.m. and again from 9 p.m. until closing – and in closing late, after most other local eateries and bars, he attracts a good number of restaurant employees.

While there is no magic potion for guaranteed restaurant survival, the key ideas that seem to come up again and again are comfort foods, catering to a different clientele by extending hours, low prices, value, and finding a niche.

Further Reading

• Seeking Alpha of the success of the Buffalo Wild Wings chain.
• MSNBC on Betty's Restaurant staying in business for 50 years.
• TheTimesOnline on fast food companies and the recession.

Winners & Losers of 2008

This year was filled with a lot of grim news for the food industry, as oil prices and a recession caused prices to soar and consumers to spend less. Not everyone was hurt by the economy, however some major players will either not be seen again in 2009, or will have to make some drastic changes to survive. Here is part one of a look at who came out on top and who struggled throughout the year. We will have more later this week, so check back!

Winner: Mc Donald's
The Motley Fool reported that MCDonald's profits continued to increase, and people dined less ion sit down restaurants and opted for their value menu instead.

McDonald's has blown past analysts' expectations again and again. This outperformance has been going on for so long it's difficult to remember way back when McDonald's was in dire need of a turnaround.

Loser: Local Restaurants

The papers are filled with the eulogies of favorite eateries. Portlanders will miss chains such as Chili's, but will also lament the closing of restaurants that helped to make Portland a national "foodie" city such as Lucier and D.F. The Oregonian reports:

Observers can't remember a worse year for Portland restaurants. In the first two months of 2008, seven restaurants closed, four as part of the implosion of the overextended N.W. Hayden Enterprises. The year ends with the fall of Lucier -- the $4 million South Waterfront showcase -- ringing in our ears. In between, more than 20 Portland restaurants shut their doors.

Winner: The Country Of Origin Labeling Law

It only took six years and multiple delays, but 2008 finally saw the roll out of the C.O.O.L law, which will allow consumers to know where their meat and produce has traveled to on it's way to the grocery store. While detractors condemned the law for being full of loopholes and a hassle for the industry, threats of fines from the USDA prompted producers, distributors, and retailers to follow suit instead of pushing back the implementation for another few years.

Loser: The Country of Origin Labeling Law

The controversial law, which will do nothing to help food safety and recall issues, was seen by some as a way for the US to sell more product over other countries. The end of 2008 showed us what might be just the beginnings of fall out from other nations; Mexico barred imports from major meat processing plants. Forbes has more:

Meat industry sources said Mexico may be striking back at the U.S. country-of-origin labeling law for fresh beef and pork, which went into effect earlier this year. "That is the only reason that we could see for Mexico doing this," said Allendale analyst Rich Nelson, as one wasn't provided.

Winner: Hormel

Not only did they just win 2008 Food Processor of the Year, Hormel is seeing as an investor's dream in this turbulent climate. The Motley Fool rated it as one of the four stocks that will shine in the market, and even those across the pond are noticing that Americans are eating Spam ahain. The UK Times Online has more:

They have shot up by more than 10 per cent in the past three months and the Hormel Foods Corporation has had to introduce a double shift at its factory in Austin, Minnesota, seven days a week to keep up with demand.

Loser: The Chicken Industry

2008 saw industry gians Pilgrim's Pride file for bankrupcy, after reporting huge losses and a losing battle with meeting creditor deadlines. Their CEO resigned two weeks ago as they struggled to reorganize, and the future of the company is uncertain. Tyson's chicken division suffered losses as well, and on December 17th they signed an agreement with creditors essentially putting up all of their assets for collateral (via Forbes). Let's hope that works out for them.

Oregon Ice Storm Notice to our Customers

A special weather notice for our customers- Pacific Food Distributors was open on Sunday through the storm, and did load trucks to go out to all of our normally scheduled deliveries. If you have closed your business or are experiencing delays in your area due to the weather, please contact your salesperson to let them know.


Pacific Food Distributors will also be on a Holiday Delivery Schedule for the next two weeks. You can find a copy of that here (pdf).