Chicken Industry Meltdown Continues

February 22, 2012

WorldPoultry.net reports:

After decades of growth and cyclic profitability, the US broiler industry has been brought to its knees by high feed costs and a recessionary economy.

And:

At the present time most US broiler producers are generating losses from their production, processing and marketing operations. The situation is compounded by a less than optimistic outlook for recovery in consumer purchasing power in addition to no prospects for relief through lower feed costs.

The trouble with a huge volume, low margin product is that it takes only a relatively small shift in the numbers to produce an industry-wide bloodbath. I expect to see droves of chicken producers quit the business over the next few years. (Via Shapiro.) Link.

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