High Chicken Prices Impoverish Buyers, Enrich Tyson Foods

Chicken prices at US grocery stores have reached record highs and are expected to remain elevated as Tyson Foods and other companies reduce poultry production to boost margins.

The higher chicken prices should enhance earnings for top producers like Tyson and Pilgrim's Pride. I Photo: Tyson Foods

This is happening as inflation-weary shoppers opt for chicken over beef and pork, as reported by Tom Polansek for Reuters.

The higher chicken prices should enhance earnings for top producers like Tyson and Pilgrim's Pride. However, they will squeeze consumers' budgets as they seek ways to save money by turning away from higher-end proteins.

One index indicates that chicken producer profit margins are at their highest point in a year.

US consumption of chicken is projected to surpass 100 pounds per person this year, a historic first, according to data from the US Department of Agriculture (USDA). In contrast, beef consumption is expected to drop to its lowest level since 2018, driven by rising prices due to dwindling cattle supplies.

Meanwhile, pork consumption has fallen to its lowest point since 2015 due to consumer spending cuts.

Arkansas-based Tyson, which sells all three types of meat, had to manage a glut of chicken after reaping massive profits when meat prices soared during the COVID-19 pandemic.

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