News

Poultry stocks and protein competition on the rise

A livestock market analyst says the alarming increase in poultry stocks in the USDA’s latest Cold Storage report could create additional competition between proteins.

University of Missouri’s Scott Brown says poultry stocks for October are 12 percent above last year’s levels.  “When you look at what’s been happening the last couple of months it’s the one protein we are seeing just an increase.”

He tells Brownfield large increases in stocks adds pressure to prices and creates an opportunity for end users, like restaurants to feature cheaper poultry products.  “If that occurs,” he says.  “That kind of menu switching doesn’t occur back very quickly.  That’s the concern if at some point they make that switch toward cheaper products – that probably is tough on beef and pork markets for a while.”

Brown says poultry prices don’t typically impact beef and pork retail demand, but when the price get far enough apart, competition does increase.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!