USA: Broiler market review for week 19 from May 13, 2024

Average prices for chicken cuts showed a positive adjustment against the backdrop of rising prices for all items except drumsticks and wings.

Tyson Foods beat Wall Street's second-quarter profit expectations. The concern benefited from the closure of some chicken processing plants. The company's shares rose 3.5%, continuing their growth of more than 15% since the beginning of the year. Since last year, Tyson has closed six U.S. poultry plants , as well as layoffs and plans to close a pork plant to cut costs. The strategy resulted in adjusted earnings of 62 cents per share, beating analysts' average estimate of 39 cents. However, the company faces challenges including slowing demand as price-conscious consumers seek more affordable options amid high food prices and borrowing costs. Second-quarter net sales fell 0.5% to $13.07 billion, slightly below estimates. Chicken segment sales fell 8.3% despite a 2.1% price drop, with volumes down 6.1%. Company management expects total sales to remain flat in fiscal 2024 , down from $52.88 billion in the prior year.

Dynamics of prices and sales volumes of broilers

Weighted average price for broilers by region

Region

Weighted average price, cents/pound

Sales (thousand pounds)

Week 18

Week 19

Weekly growth,%

Week 18

Week 19

Weekly growth,%

Oriental

130.33

130.22

-0.1%

4,802

4,924

2.5%

Central

123.34

124.71

1.1%

2 353

2 237

-4.9%

West

142.55

142.22

-0.2%

3 205

2 920

-8.9%

Dynamics of prices for chicken cutting

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