What's New ? - 2020

What's New ? - 2020

The U.S. chicken market should expect positive growth in 2020

CoBANK report 9 April, 2020

The U.S. chicken market should expect positive growth in 2020 despite challenges posed by the COVID-19 pandemic, reveals the latest Quarterly report from cooperative bank CoBank.In the first two months of 2020, chicken production grew 7.7%. At the time, the industry was largely optimistic given expectations that renewed exports to China would be happening soon. This growth exceeded expectations and CoBank now predicts the 2020 chicken supply to increase by 3-4%, up from the original estimates of 2-3%. In March, the spread of COVID-19 shifted the focus to domestic markets. With most governing bodies advising people to stay at home, consumers have turned to at-home dining. Chicken sales have grown exponentially as a result, with the price of chicken breasts has increased at a rate higher than expected.
The price of chicken breast, which is almost entirely sold domestically, has jumped in the last month beyond the expected seasonal increase. With much of U.S. ordered to stay home, foodservice demand is in question. The degree to which that demand shifts to retail will dictate how long these positive prices remain.
While some product was exported at the end of 2019 and this January, expectations of large exports in the first quarter have diminished as the coronavirus spread across the world. China’s chicken imports from the U.S. are expected to increase this spring and summer as the coronavirus pandemic comes under control there.

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