According to a report by Bloomberg, chicken production is struggling amid an “oversupply, weak prices and sluggish consumption,” whereas beef production has begun to recover from virus disruptions, leading suppliers to benefit from more robust demand and prices.
“We are going to have this flood of red meat coming into the market,” said Peter Galbo, an analyst at Bank of America, adding that retail features for beef are expected to rise “dramatically” this autumn.
U.S. chicken producer Sanderson Farms, Inc. estimated its fourth-quarter production will fall 5 percent compared to last year. CEO Joe Sanderson predicted “lower demand during the holiday season for all of our products.” Despite the discount on chicken prices compared to beef, beef consumption remains at a steady pace.
