Blog: Washington swoops to help US poultry producers
Dean Best | 17 August 2011
In recent days, we've detailed how the US poultry sector is suffering from high input prices and weak consumer demand.
Add soaring feed costs to low demand for poultry products (which has caused an over-supply of chicken and prices to drop) and you have severe pressure on processors' margins.
Even the largest players have felt the pain. Last week, Tyson Foods reported a slump in quarterly profits on the back of sliding earnings from poultry. In the three months to 2 July, Tyson's poultry profits were US$28m. In the same period last year, they were $186m.
Last month, rival processor Pilgrim's Pride said it would close a plant in Dallas, a move that could lead to around 1,000 jobs being lost.
Pilgrim's Pride, which is controlled by Brazilian meat giant JBS, said it needed to improve how it uses its production capacity amid "record-high" feed costs and an over-supply of chicken.
What's more, the announcement came as Pilgrim's Pride reported a $128.1m loss for the second quarter of its financial year.
However, reports in the US say that the US Department of Agriculture is set to make a special purchase of poultry products worth $40m.
According to the Chicago Tribune, the USDA made a similar move last year when it purchased $30m of products. In 2008, it snapped up $42m worth of chicken.
The products are used for the USDA's food assistance programmes but, it is hoped, others far away from America's soup kitchens will feel the benefit.
The BBC turned to just-food today for insight on the price dispute between Tesco and Unilever....
Just weeks after buying UK turkey processor Bernard Matthews from administration, food tycoon Ranjit Boparan has struck a similar deal....
Shares in Tyson Foods slumped on Friday, closing down almost 9% after an analyst claimed a lawsuit facing the company could hit the US meat titan....
- It won't just be Unilever to push for Brexit hikes
- Price an underlying tension across European FMCG
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on Brexit's policy impact
- Interview: UK trade body on the impact of Brexit
- Nestle lowers outlook on "softer environment"
- UK announces "action plan" to drive food exports
- China "transition" drags on Danone Q3
- Farmers' groups slam Danone over non-GMO stance
- Kraft Heinz: Innovation more important than ever
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review