Poultry Increases

Poultry Market Update


With corn where it is and no end in sight, our poultry suppliers believe there will be more cutbacks forthcoming, at least until we hear some solid crop numbers. The belief is that some of the larger companies are going to have to get boneless to the mid $1.90's just to break even. If everything stays the way it is today the only way to do that is to take more birds off the market. The bottom line is the corn crop is going to determine everything and unless someone steps in and changes mandates on the ethanol numbers, we will have to see cutbacks and a higher market, or suppliers will be forced to cutback by closing plants.

The weak dollar has kept dark meat up on the export side and if for some reason that was to change (which we do not see in the near future) it would obviously compound the problem and probably lead to more and quicker cut backs.

The uncertainty associated with grain and fuel has created caution in the industry for the execution of long term pricing.


Ed Gorrell
Category Manager Protein
SYSCO, Pittsburgh